Input Credit Utilisation for set off of taxable services provided by educational institutions

[Rajat Singhania]

Dear Panel,

An educational institution registered under Section 12AA receives rent on building provided by it for accomodating its students. The receipt of rent is a taxable event and hence taxable under GST. My question is whether the said Institution can avail any ITC in its account to set off the liabilty for payment of GST on rent.

AI Summary

Input tax credit available for taxable rental services of educational institutions, subject to apportionment and blocked credit rules.
A registered educational institution may claim input tax credit only for goods or services used for taxable output services-such as renting a commercial building-and not for inputs attributable to exempt education services. Availability and utilisation of credit are subject to statutory restrictions on blocked credits and to prescribed apportionment and application rules for mixed exempt and taxable supplies.