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September 20, 2022

No GST exemption for renting immovable property to a government school

by CA Shivam Jaiswal in GST, Legal Court Judgement

No GST exemption for renting immovable property to a government school

Facts and Issue of the Case

M/s. Bollu Siva Gopala Krishna, Flat No 401, Saya Sai APTS, Srinivasa Colony (East) Ameerpet, Hyderabad – 500 038. (Un Registered) has filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST/TGST Rules.

 At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression ‘GST Act’ would be a common reference to both CGST Act and TGST Act.

 It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5,000/- for CGST towards the fee for Advance Ruling. The concerned jurisdictional officer also raised no objection to the admission of the application. The application is therefore, admitted.

The applicant M/s. Bollu Siva Gopala Krishna is desirous of ascertaining whether the said service is taxable if rendered to educational institutions registered under Section 12AA of the Income Tax Act, 1961 or to a Government School. Hence this application.

Observation by the Court

The applicant is renting immovable property and is desirous of ascertaining whether the said service is taxable if rendered to educational institutions registered under Section 12AA of the Income Tax Act, 1961 or to a Government School.

Notification No. 12/2017 at Serial No. 13 exempts services rendered by the charitable or religious trust registered under Section 12AA of the Income Tax Act, 1961. The said entry does not exempt services rendered to such institutions. Therefore renting of immovable property to recognized educational institutions registered under Section 12AA are taxable supplies or services attracting CGST & SGST @9% each.

Similarly there is no exemption for renting an immovable property to Government School and the consideration from such activity is taxable @9% CGST & SGST each.

Conclusion

QuestionsRuling
1. Whether GST is applicable on Renting of an immovable property to a Recognized Educational institution (Which is not a commercial Activity) and which is also registered under section 12AA of the Income-tax Act, 1961 and which provides (iv) Pre-School education and education up to higher secondary school or equivalent, (v) Education as a part of a curriculum for obtaining a qualification recognized by any law for the time in force, (vi) Education as a part of an approved vocational education course;GST is applicable @9% CGST & SGST each.
2. Whether GST is applicable on Renting of an immovable property to a Government School.GST is applicable @9% CGST & SGST each
In-re-Bollu-Siva-Gopala-Krishna-GST-AAR-Telangana

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