Is GST applicable for hostel?

Is GST applicable for hostel?

MUMBAI: The Maharashtra bench of the Authority for Advance Rulings (AAR) has held that hostel fees charged to students will not attract goods and services tax (GST) where the rent per room is less than Rs 1,000 per day, per person. This will be subject to a ‘nil’ rate under Entry Number 14.

Is GST chargeable on food?

At present, restaurants charge 5\% GST without input tax credit, on the supply of services including supply of food and beverages. Meanwhile, food aggregators such as Swiggy and Zomato are registered as tax collectors at source. Meanwhile, cloud kitchens will be taxed 5\% GST without input tax credit.

What food does GST apply to?

GST applies to all food and beverages consumed on the premises that supplied them, and to hot food supplied as take-away. Other foods may be GST-free.

Is GST applicable on tiffin service?

Outdoor catering attracts 18\% GST, while canteen services face 5\%. The levy on supply of food or beverages by facilities such as a mess or canteen was reduced to 5\% in November.

How much GST can you claim on meals?

For most meals and entertainment, the input tax credit would be for only 50 per cent of the GST paid. According to the CRA, you can calculate your ITCs for meals and entertainment in two ways: Claim 100 per cent ITCs throughtout the fiscal year.

What is the GST on service charge?

TSTS recognizes its share of service charges and again pays GST at the rate of 18 per cent on a monthly basis.

What is the GST on hostel services?

When we talk about the GST on hostel services like lodging facility, under the GST Law, services for residential or lodging purposes by a hotel, inn, guest house, club, campsite, a hostel or by whatever name referred, having the specified tariff of a unit of accommodation below 1000 rupees per day is exempted from GST.

What is the GST on lodging and boarding services in schools?

Now, the Lodging and Boarding services served by educational institutions in hostels from the pre-school to higher secondary level are exempted from GST while 18 per cent GST is imposable on the annual fees payable to the schools/hostels for lodging.

What is the GST on mess and canteen fees?

Immaterial of whether it is served by the educational institution or an outside (foreign) contractor, services related to food or drink provided by a mess or canteen is always taxable at 5\% without Input Tax Credit. Training programs, camps, yoga and other programs are considered as commercial activities and therefore comes under GST tax bracket.

Which services are GST exempted?

Services provided by an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) by the means of charitable activities are also GST exempted. Under the GST, the services, provided by an educational institution to its students, faculty /staff or to an educational institution, which is exempted from GST are as follows: