The Telangana Authority of Advance Ruling (AAR) ruled that an 18% GST would be levied to renting immovable property to an Educational Institution which was enrolled under section 12AA of the Income Tax Act 1961.
The petitioner M/s. Bollu Siva Gopala Krishna asks for an advance ruling on the problem of whether the rental of immovable property to an educational institution enrolled under section 12AA of the Income Tax Act 1961 is obligated for filing the GST or not.
Whether the GST would be levied on rent of the immovable property to a Prominent Educational institution, enrolled under section 12AA of the Income-tax Act, 1961, the applicant asks.
Thinking about the petitioner’s averment, the council revealed, no exemption would be held on service provided via services rendered by the charitable or religious trust registered under Section 12AA of the Income Tax Act to these institutions. Hence levying rent on the immovable property to acknowledge educational institutions registered under Section 12AA are taxable supplies or services drawing the CGST & SGST at 9% each.
The council, member Raghu Kiran, and S.V. Kasi Visweswara Rao held that taking rent on the immovable property to a Recognized Educational institution that is enrolled under section 12AA of the Income-tax Act, 1961 and furnishes education to students will draw 18% GST.
| Applicant | M/s. Bollu Siva Gopala Krishna |
| Citation | TSAAR Order No.43/2022 |
| Date | 15.07.2022 |
| Present for the Appellant | Sri B. Raghu Kiran and Sri S.V. Kasi Visweswara Rao |
| Telangana AAR | Read Order |
