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?

[Himansu Sekhar]

Sir,

The annual subscription is subject to tax at 18%. Invoice will be issued.

If subscription received from unregistered person, RCM is applicable.

The tax paid can be taken as credit.

[KASTURI SETHI]

Query wise reply is as under 1. Yes SAC. 9992. @18%. 2. Yes. 3. Yes. 4. Yes. Also support the view of Sh.Himansu Ji.

[Himansu Sekhar]

Thank you sir

[Chhatra Jain]

Dear Sir

This is in response to your issues raised:

Yes GST is applicable on annual subscription of ICAI, ICSI, ICWAI institutes. ICAI in its Head Office Advisory No 1 dated 30 -6-2017 has directed that u/s 7 of CGST Act GST is to be levied effective 1st July 2017.

Rate is 18% (CGST 9%+SGST 9%)

As ICAI has directed its members to add 18% tax on fees/ subscription there is no question of payment in reverse charge by institute.

As Advisory did not asked members to register their GSTIN with it, it is to be inquired from Institutes whether ITC is available or not. And is it going to raise invoices or not?

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.