GST in case of 12AA of the Income tax Act, 1961

[RameshBabu Kari]

Dear Experts,

An educational institution(Service recipient) registered u/s 12AA of the IT act, received the services in the form of seminor on training from the registerant of GST. In such case, Does institute registered u/s 12AA is liable to pay gst on the tax invoice raised by the service provider ?

[KASTURI SETHI]

Under Notification No.12/17-Central Tax Rate dared 28.6.17 exemption from GST is to Service Provider registered under Section 12 AA of the Income Tax Act. Moreover, Commercial coaching or training service is not under RCM. Seminsrs are under this category.

[RameshBabu Kari]

Dear Expert,

If services provided to entity registered u/s 12AA by registrant gst ? In such case , does 12AA registered entity pay GST against that invoice by the service provider ? if not, what is the liability on the service provider for such invoice raised with gst ?

[KASTURI SETHI]

Holding seminar is not a charitable activity. Service provider has to deposit GST after collecting from the service receiver (may be registered under Section 12 AA of the IT Act

[RameshBabu Kari]

Thank you sir

[Ganeshan Kalyani]

Receiving service from an unregistered supplier of service is also liable to reverse charge. I.e. recipient of supply of service is liable to pay GST under RCM.

AI Summary

GST liability for seminar services: provider generally must collect tax; recipient may be liable under reverse charge. The issue concerns whether an educational institution registered under the Income Tax Act must pay GST on seminar/training services. Responses identify three operative positions: a claimed tax-notification exemption for entities registered under the Income Tax Act; that seminar provision may be treated as taxable with the service provider obligated to collect and deposit GST; and that the recipient may be liable under the reverse charge mechanism when the supplier is unregistered.