18% GST applicable on Renting Immovable Property to an Educational Institution registered u/s 12AA of Income Tax Act: AAR [Read Order]

The Telangana Authority of Advance Ruling (AAR) recently held that 18% GST applicable on renting immovable property to an Educational Institution which was registered under section 12AA of Income Tax Act 1961

The applicant M/s. Bollu Siva Gopala Krishna sought the advance ruling on the issue of whether the rental of immovable property to an education institution registered under section 12AA of Income Tax Act  1961 is liable to pay GST or not.

The applicant sought the advance ruling on the issue of whether GST is applicable on Renting of an immovable property to a Recognized Educational institution and which is also registered under section 12AA of the Income-tax Act, 1961

While considering the averments of the applicant, authorities find that services rendered by the charitable or religious trust registered under Section 12AA of the Income Tax Act does not exempt services rendered to such institutions. Therefore renting of immovable property to recognize educational institutions registered under Section 12AA are taxable supplies or services attracting CGST & SGST at 9% each.

The authority consists of member Raghu Kiran, and S.V. Kasi Visweswara Rao, ruled that Renting of an immovable property to a Recognized Educational institution and which is also registered under section 12AA of the Income-tax Act, 1961 and which provides Education to students shall attract b18 GST.

To Read the full text of the Order CLICK HERE

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