Rate of tax (service)— In the instant case, the applicant is desirous of ascertaining whether the said service is taxable if rendered to educational institutions registered under Section 12AA of the Income Tax Act, 1961 or to a Government School. 

Questions raised for advance ruling is as follows—

Whether GST is applicable on Renting of an immovable property to a Recognized Educational institution (Which is not a commercial Activity) and which is also registered under section 12AA of the Income-tax Act, 1961 and which provides

(i) Pre-School education and education up to higher secondary school or equivalent,

(ii) Education as a part of a curriculum for obtaining a qualification recognized by any law for the time in force,

(iii) Education as a part of an approved vocational education course;

2. Whether GST is applicable on Renting of an immovable property to a Government School.

The applicant is renting immovable property and is desirous of ascertaining whether the said service is taxable if rendered to educational institutions registered under Section 12AA of the Income Tax Act, 1961 or to a Government School.

Notification No. 12/2017 at Serial No. 13 exempts services rendered by the charitable or religious trust registered under Section 12AA of the Income Tax Act, 1961. The said entry does not exempt services rendered to such institutions. Therefore renting of immovable property to recognized educational institutions registered under Section 12AA are taxable supplies or services attracting CGST & SGST @ 9% each.

Held that— There is no exemption for renting an immovable property to Government School and the consideration from such activity is taxable @9% CGST & SGST each.