Taxability Issue under GST

[Dlip Choudhary]

There is a Pvt Company which has rented out its land and school building to a trust for running a CBSE school ( Private ) .While raising an invoice monthly, whether GST should be added?

AI Summary

GST Applies to Leasing School Property: Trusts Need to Meet Specific Criteria for Exemption Under Notification No. 12/2017. A private company rented its land and school building to a trust for operating a CBSE school and sought clarity on whether GST should be applied to the monthly invoice. Mukund Thakkar confirmed GST is applicable, referencing Schedule II, which categorizes leasing land and buildings as a supply of services. Kasturi Sethi agreed, adding that trusts are exempt from GST only if they meet conditions under Notification No. 12/2017. Madhavan Iyengar emphasized that merely having Income Tax certification under Section 12AA is insufficient; the trust must also meet restrictive GST law definitions of charitable activities for exemption.