Renting of Immovable Property to Educational Institution

[Kushal Mishra]

Dear All,

A classic case has arrived just wish to get insight on 'Taxability of renting of Immovable Property (buildings) given on rent to Educational Institution in order to set up hostel facility for their students'.

What are your thoughts whether the rental receipt from educational institution for building which they are using as hostel will be chargeable to tax in the hand of Owner of the building. Total Rent Charged is more than ₹ 1 Crore Approx.

AI Summary

Renting Buildings to Educational Institutions for Student Hostels Exceeding 1 Crore is Taxable Under GST A query was raised regarding the taxability under GST of renting a building to an educational institution for use as a student hostel, with rent exceeding 1 crore. A participant referenced a case from the Service Tax era that might be relevant, discussing whether the rental qualifies as a 'supply' under the CGST Act. Another participant agreed, noting that the rental contract aligns with the definition of a supply of service and does not qualify for residential unit exemptions under GST, thus making it taxable.