GST exemption on mess services provided in government operated hostels

[Aditya Khandelwal]

Dear All,

Is there any exemption on mess services provided on contract basis to government operated hostels for socially backward class of people?. These hostels are usually located at district places for backward class people pursuing education or doing jobs. These facilities are provided free of cost/concessional rate to such people by various Departments of Central or State govt responsible for upliftment of socially backward community. (Hostels are not run by any educational body)

I thought of fitting it into entry no. 3 of Notification no 12/2017- Central Tax (Rate). But it covers only Pure services. Whereas, subjected mess services would be treated as composite supply.

Request your expert opinion on the issue.

AI Summary

Pure service classification affects GST exemption for contracted mess services to government hostels serving backward communities.
Mess services for government operated hostels involve supply of food treated as a service under Schedule II and, when combined with catering, may be a composite supply; a pure service exemption excludes composite supplies, so the stated exemption entries will not apply to such mess services as described.