College Mess Fee Dues

[Asked by Guest]

I am a 1st year student of Manipal University Jaipur. We received a mail from finance department saying we have to pay INR 5,492 as mess fee dues. The mail didnt have any details mentioning the reason. On replying and asking they said it is GST.

We had paid the Hostel Fee+Mess fee summing to INR 1,80,000 in June 2017.

The Mess fee of INR 53,500(including VAT) was paid in June 2017 for the time of Aug 2017- May 2018. According to what I have searched online, GST cant be applicable on an amount if fee has been paid before GST Launch. The date on the receipt is 20-Jun-2017.

They are giving reason that though payment has been made in advanced, they are procuring the raw materials/groceries monthly thats why GST is being levied. They are also giving reference to GST Flyers Chapter 6, GST on advances received for future supplies.

Can the College charge GST on an already taxed amount ?

[KASTURI SETHI]

GST cannot be charged when payment was made prior to 1.7.17 and bill was issued to you prior to 1.7.17 though the goods/eatable material was to be purchased / utilised for the period from August, 18 onwsrds. No law provides for double taxation.

[KASTURI SETHI]

Otherwise also there is GST on advance for goods.

[KASTURI SETHI]

Prior to 1.7.17, Central Excise duty was leviable on excisable goods on the value which was inclusive of VST/ Sale Tax. W.e.f. 1.7.17 VAT was subsumed in GST. Now there is no double taxation in GST. To collect GST prior to 1.7.17 is unconstitutional and hence illegal.

Services were started in August 2017- May 2018 then also they can't charge GST ?

[KASTURI SETHI]

Dear Querist,

Yes, I agree with you. Pl. read there is ' NO GST' on advance for goods.

[Alkesh Jani]

Sir, I agree with the views expressed by Sh. Kasturiji, In this regards, please refer Section 142 (11)(a) & (b). Therefore, if the VAT has already been paid before appointed day, GST is not applicable.

[KASTURI SETHI]

Sh.Alkesh Jani Ji,. Thank you for incorporating legal force and thus throwing more light on the issue.

[Alkesh Jani]

Sir, thanks,

with due regards

[YAGAY and SUN]

Please confirm whether your college Mess is registered under the provisions of FSSAI or not?

[Ganeshan Kalyani]

If service was provided before GST and payment was made after GST and invoice also raised after GST then GST will be applicable.

If service was provided post GST and advance was paid pre GST and invoice also raised pre GST then old tax will be applicable.

If Service was provided pre GST and payment and invoice raised post GST then GST is applicable.

Mr. Ganeshan,

Payment (with VAT) was made in June for which we got receipt in june, service was provided from august and then monthly invoices were issued every month from august. Still they can charge GST ? The are giving reference to provisions act. GST Flyer Chapter 6.

[Padmanathan KV]

hostel fees will be exempt as the per day rent will be less than rs1000/ the food supplied by the college to the students is also exempt from gst. there fore the vcollege can not collect GST on hostel/mess fees.

AI Summary

GST on advance payments: pre-GST payments with pre-GST receipts cannot be re-taxed under GST; invoice timing matters.
Where payment and receipt were made before GST rollout, subsequent levy of GST on the same amount is not supported because VAT already paid is subsumed and double taxation is not permitted; taxability of advances depends on whether the advance relates to goods or services and on invoice timing and applicable exemption for food and hostel supplies.