07 July 2024
GST applicability on renting building premises to government schools is guided by the specific exemptions provided for educational institutions under the GST law. Here's a detailed explanation:
### GST on Renting of Immovable Property
Under GST law, the renting of immovable property is generally considered a supply of services and is subject to GST. However, there are exemptions available for certain types of services provided to educational institutions.
### Relevant Exemption Notification
According to Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017, certain services provided to educational institutions are exempt from GST. One of these exemptions is:
- **Entry No. 66**: Services provided to an educational institution by way of renting of immovable property.
### Definition of Educational Institution
As per the notification, an "educational institution" is defined as an institution providing services by way of:
1. **Pre-school education and education up to higher secondary school or equivalent**. 2. Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force. 3. Education as a part of an approved vocational education course.
### Government Schools
Government schools that provide education up to higher secondary school or equivalent fall under the definition of an "educational institution" as per the above notification.
### Applicability to Renting Building Premises
If you are renting building premises to a government school that provides education up to higher secondary school or equivalent, the renting service is exempt from GST under the following conditions:
- **Nature of Institution**: The tenant must be an educational institution as defined in the notification. - **Type of Service**: The service provided must be renting of immovable property.
### Conclusion
Renting building premises to government schools for children, which provide education up to higher secondary school or equivalent, is exempt from GST under Notification No. 12/2017-Central Tax (Rate), Entry No. 66.
### Supporting Clauses and Notification
1. **Notification No. 12/2017-Central Tax (Rate), Entry No. 66**: > "Services provided to an educational institution, by way of renting of immovable property."
2. **Definition of Educational Institution**: > An institution providing services by way of: > (a) Pre-school education and education up to higher secondary school or equivalent; > (b) Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force; > (c) Education as a part of an approved vocational education course.
### Practical Steps
1. **Verify Status**: Confirm that the government school qualifies as an educational institution providing education up to higher secondary school or equivalent. 2. **Documentation**: Maintain proper documentation to substantiate the nature of the institution and the service provided to ensure compliance with the exemption provision.
In summary, renting building premises to government schools for children is exempt from GST if the school falls under the definition of an "educational institution" providing education up to higher secondary school or equivalent.
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