2022 (9) TMI 784 - AAR - GST

Exemption from GST - 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 - Pre-School education and education up to higher secondary school or equivalent - Education as a part of a curriculum for obtaining a qualification recognized by any law for the time in force - Education as a part of an approved vocational education course - Levy of GST on Renting of an immovable property to a Government School. HELD THAT - 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.

Summary

Issues:
1. Applicability of GST on renting immovable property to recognized educational institutions.
2. Applicability of GST on renting immovable property to Government Schools.

Analysis:
1. The applicant, an unregistered entity, sought an advance ruling on the GST implications of renting immovable property to educational institutions registered under Section 12AA of the Income Tax Act, 1961, and to Government Schools. The application was admitted after fulfilling the necessary requirements.
2. The applicant raised specific questions regarding the GST applicability on such rental activities to educational institutions and Government Schools. The questions highlighted the nature of educational services provided by the institutions.
3. During the personal hearing, the applicant's authorized representative reiterated the queries regarding the GST liability on renting immovable property to private recognized educational institutions and Government Schools.
4. The ruling authority examined the relevant provisions and found that services rendered to educational institutions registered under Section 12AA of the Income Tax Act, 1961, were not exempt from GST. Therefore, renting property to such institutions attracts CGST and SGST at 9% each.
5. Similarly, the authority determined that there was no exemption for renting property to Government Schools, making the consideration taxable at 9% CGST and SGST each.
6. The ruling clarified that GST is applicable at 9% CGST and SGST each on renting immovable property to recognized educational institutions and Government Schools, irrespective of the nature of educational services provided by these institutions.

This detailed analysis of the judgment provides a comprehensive understanding of the issues involved and the authority's findings regarding the GST implications of renting immovable property to educational institutions and Government Schools.