Order Date: 15 July 2022

Key Pointers-

• The Applicant M/s. Bollu Siva Gopala Krishna is desirous of ascertaining whether the renting of immovable property is taxable if it is rendered to educational institutions registered under Section 12AA of the Income Tax Act, 1961 or to a Government School ?
• The Authorities observed 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 recognize 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.
• The Authorities held that GST is applicable @9% CGST & SGST each on renting of immovable property to a private recognized educational institution and to Government school.