The central government recently revealed that the food and drinks which is distributed at the educational institutes are subjected to the 5 percent goods and services tax.
The finance ministry mentioned that all the supply of food and drinks supplied in the mess or canteens of the education institutes will be subjected to 5 percent GST via an official notice.
The ministry exerted the fact that if in case a school up to higher secondary level supplying the food and drinks directly to the students, in that case, the GST will be exempted.
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In the earlier announcement, the government notified that all the railway catering services will be levied with 5 percent goods and services tax regarding the food and drinks supplied on the stations and on the platforms.
The CBEC acted quick and announced the rates of GST to the public in order to stay away from any confusion among the issues led by alternative tax rates. The government also made it clear that the tax rates applicable in the canteen for employees will also be taxed at 5 percent GST.
Overall the issues are still underway regarding the tax rates but a short announcement is better to take care of the situation in a practical life when one should not argue with any business entity regarding the tax rate, a factor that is relevant to every citizen.
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