GST on renting of Immovable property by Educational Inst (12AA) and its affiliates

[Amit Choudhary]

First : Educational institute reg u/s 12AA rented immovable property to a company for residential dwelling use . Second : Company run hostel and collect fees for students of school/ college. What will be the Service tax liability of 1. Educational institute 2. Company taxability

[Himansu Sekhar]

Educational institute will pay service tax subject to the 10lakh cap as the houses were used for furtherance of business.

AI Summary

GST on renting of immovable property: rent used for business makes the lessor's supply taxable while hostel charges are separately taxable. Where an educational institution registered under section 12AA rents immovable property to a company and the company uses that property to run a hostel and charge fees to students, the lessor's receipts from such renting are taxable as supply because the premises are used in furtherance of the lessee's business; the hostel operator's charges for accommodation constitute a separate taxable activity.