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

AI Summary

Educational institution renting property for hostel use liable for service tax under section 12AA, subject to 10 lakh exemption. An educational institution registered under section 12AA rented out immovable property to a company for residential use. The company operates a hostel and collects fees from students. The query seeks to clarify the service tax liability for both parties. The response indicates that the educational institution is liable to pay service tax, subject to the exemption limit of 10 lakh, as the property is used in the furtherance of business.