ANNUAL SUBSCRIPTION

[DR.MARIAPPAN GOVINDARAJAN]

Dear Colleagues,

Please discuss the following issue-

Whether the annual subscription paid to the professional institutes such as ICAI,ICAI, ICWAI attracts GST?

If so what is the rate?

Whether the Institute is to raise invoices against all the members?

Whether the Institute is pay to tax under revserse charge if the member is not registered under GST?

Whether the tax paid on annual subscription can be taken as input tax credit by the members who registered with GST?

AI Summary

Professional Institute Subscriptions Subject to 18% GST; Input Tax Credit Available for Registered Members A discussion on whether annual subscriptions to professional institutes like ICAI, ICSI, and ICWAI are subject to GST concluded that they are taxed at 18%. Invoices will be issued, and if the subscription is received from an unregistered person, the reverse charge mechanism applies. Members registered under GST can claim the tax paid as input tax credit. An advisory from ICAI confirmed the applicability of GST effective from July 1, 2017, and clarified that there is no reverse charge payment required by the institute. The availability of input tax credit depends on institute policies.