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?

[MUKUND THAKKAR]

yes..

GST applicable, please refer Schedule II (sec-7)

Land and Building

(a) any lease, tenancy, easement, licence to occupy land is a supply of services;

(b) any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services.

[KASTURI SETHI]

I support the views of Sh.Mukund Thakkar, Sir.

I would like to further add that exemption to Trust is available only if Trust conforms to the conditions laid down under Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 as amended. Entry No. 1 of this notification specifies that “services by an entity registered under Section 12AA of Income-tax Act, 1961 by way of charitable activities are exempt from whole of GST.

[Madhavan iyengar]

sirs

as already replied by Thakkar sir and Kasturi sir who have correctly laid down the principles and conditions

i would also like to add that merely satisfying the condition of 12AA ie Income tax certification wont suffice the charitable activities conditions have to be satisfied in terms of charitable activity defined under GST law which is quiet restrictive if we see the definition hence one needs to check the charitable activity falling under gst law and then only go for exemption.

[Dlip Choudhary]

Thanks everyone for their time & efforts

AI Summary

GST on lease of land and building: supply of services, exemption only if charitable activity meets GST conditions.
The lease or letting out of land and buildings is treated as a supply of services under Schedule II, so GST is generally chargeable on monthly invoices. Exemption is possible only if the trust both holds appropriate income tax registration for charitable purposes and the activity qualifies as a charitable activity under GST; income tax certification alone is insufficient.