New Delhi, Apr 12 (IANS): The Union Finance Ministry on Wednesday said GST is not applicable on food and drinks supplied by schools directly to the students, while it is 5 per cent without input tax credit for mess and canteens in educational institutions.

"If schools up to higher secondary level supply food directly to students, then the same is exempt from GST," the ministry said in an official statement, clarifying about Goods and Services Tax (GST) on supply of food and drinks in educational institutions.

It said: "Supply of food and drinks in a mess or canteens in educational institutions attracts GST at five per cent without input tax credit (ITC)."

ITC is a facility that sets off tax paid on inputs against the final tax to be paid by consumers.

The GST Council, in November 2017, had cut tax rates for all restaurants, except those located in hotels with per day room tariffs of Rs 7,500 and above, to five per cent from 18 per cent without the ITC facility.