‘Sarais’ under religious or charitable trusts exempted from GST, says CBIC

‘Sarais’ run by religious or charitable trusts are exempt from Goods and Services Tax (GST) regardless of rent, the Union Finance Ministry said on Aug.

Some ‘sarais’ managed by the Shiromani Gurdwara Parbandhak Commission (SGPC) have begun to collect GST for rent up to 1,000 per day after the decision on the recommendations of the 47th GST Council meeting effective July 18, 2022.

As recommended by the GST Council meeting, hotel rooms cost up to 1,000 per day is included in the 12% GST rate compared to the previously exempt category.

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However, GST is not applicable to room rent in religious areas of a charitable or religious foundation, the Central Indirect Taxation Commission said in a series of tweets.

CBIC cites this as another exemption, which exempts rooms from being rented in religious quarters by a charity or religious faith, where the amount payable for the room is smaller. 1,000 per day. In addition, it also added that the exception continues to be in effect without any changes and is available as of June 28 notice.

“Areas of a religious site, in terms of the foregoing notice, must have a broader meaning than include a Sarai even if it lies outside the boundary wall of a complex of a religious site. , in the surrounding area and managed by the same trust/management,” another tweet said.

Three Sarais – Guru Gobind Singh NRI Niwas, Baba Deep Singh Niwas, Mata Bhag Kaur Niwas – managed by SGPC in Amritsar have started paying GST effective from 18 July 2022.

“These sarais managed by the SGPC can take advantage of the exemptions outlined above for their room rentals,” it said.

With PTI . input

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