Input Credit Utilisation for set off of taxable services provided by educational institutions
Query (Issue) Started By: – Rajat Singhania Dated:- 23-5-2018 Last Reply Date:- 24-5-2018 Goods and Services Tax – GST
Got 8 Replies
GST
Dear Panel,
\nAn educational institution registered under Section 12AA receives rent on building provided by it for accomodating its students. The receipt of rent is a taxable event and hence taxable under GST. My question is whether the said Institution can avail any ITC in its account to set off the liabilty for payment of GST on rent.
\nReply By Nitika Aggarwal:
\nThe Reply:
\nFrom whom this educational institution gets the rent?
\nReply By Alkesh Jani:
\nThe Reply:
\nSir,
\nThe ITC is governed by Chapter-V<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n towards output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to such conditions and within such time as may be prescribed” = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of taxable output services i.e. renting of commercial building. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Input Credit Utilisation for set off of taxable services provided by educational institutions Query (Issue) Started By: – Rajat Singhania Dated:- 23-5-2018 Last Reply Date:- 24-5-2018 Goods and Services Tax – GSTGot 8 RepliesGSTDear Panel, An educational institution registered under Section 12AA receives rent on building provided by it for accomodating its students. The receipt … Continue reading “Input Credit Utilisation for set off of taxable services provided by educational institutions”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-11906","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11906","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11906"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11906\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11906"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11906"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\nOn conjoint reading, I am of the view that, you can utilize the ITC for output tax, i.e. other than tax payable under RCM.
\nOur experts may correct me if mistaken.
\nThanks
\nReply By Rajat Singhania:
\nThe Reply:
\nHi Nitika,
\nThe rent is received from a pvt. ltd. company
\nReply By Rajat Singhania:
\nThe Reply:
\nHi Alkesh,
\nI had the same view until I read an article issued by CBEC which mentions that, for educational institutions, " Regarding, input services, it may be noted that where output services are exempted, the Educational institutions may not be able to avail<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nFor the sake of your knowledge, it is essential to highlight that renting of residential dwelling is outside the purview of CGST Act, 2017 by way of Notification No. 12\/2017-Central Tax (rate). Since, you are not covered under the ambit of aforesaid notification, thus you are not eligible for the aforementioned exemption.
\nFurther, the amount of ITC available in the electronic ledger of the registered person shall be utilized in accordance with the provisions of section 49(5) of CGST Act, 2017.
\nCA Nitika Aggarwal
\n9953157961
\nReply By Alkesh Jani:
\nThe Reply:
\nSir, Please refer Rule 42 of CGST Rule, 2017 for your query.
\nReply By YAGAY and SUN:
\nThe Reply:
\nWe endorse the very <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n