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

GST on annual subscriptions to professional institutes is chargeable; invoices required, ITC available and RCM issues may arise. Annual subscriptions to professional institutes are taxable supplies under GST (SAC 9992) and attract the standard GST rate split between CGST and SGST. Institutes should issue invoices. Replies indicate Reverse Charge Mechanism may apply when subscriptions are received from unregistered members, though institute advisories directing members to add tax would avoid RCM. Registered members can claim Input Tax Credit on tax paid, and institutes should clarify invoicing and GSTIN/ITC procedures.