gst: No GST relevant on rental of ‘sarais’ underneath spiritual or charitable belief: CBIC

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The Union Finance Ministry on Thursday stated ‘sarais’ run by spiritual or charitable trusts are exempt from the Items and Companies Tax (GST) regardless of lease. Sure ‘sarais’ managed by the Shiromani Gurdwara Parbandhak Committee (SGPC) on their very own began accumulating GST for rents as much as Rs 1,000 per day after the selections on the suggestions of the forty seventh GST Council assembly got here into impact from July 18, 2022.

As per the advice, resort rooms having room rents as much as Rs 1,000 per day have been introduced underneath the GST fee slab of 12 per cent from the sooner exempt class.

Nonetheless, the GST is just not relevant on room lease in spiritual precincts by a charitable or spiritual belief, the Central Board of Oblique Taxes underneath the Finance Ministry stated in a sequence of tweets.

There may be one other exemption which exempts renting of rooms in spiritual precincts by a charitable or spiritual belief, the place quantity charged for the room is lower than Rs 1,000 per day, it stated, including this exemption continues to be in drive with none change.

This exemption is out there as per the notification dated June 28, 2017.

“The precincts of a non secular place, when it comes to above notification, must be given broader which means to incorporate a Sarai even whether it is positioned outdoors the boundary wall of a posh of a non secular place, within the surrounding space, and managed by the identical belief/administration,” one other tweet stated.

This view has been constantly taken by the Centre even within the pre-GST regime, it stated, including that state tax authorities may take the identical view of their jurisdiction.

It has come to the discover that the three Sarais — Guru Gobind Singh NRI Niwas, Baba Deep Singh Niwas, Mata Bhag Kaur Niwas — managed by the SGPC in Amritsar have began paying GST with impact from July 18, 2022.

“These sarais managed by the SGPC might subsequently avail the above said exemptions in respect of renting of rooms by them,” it stated.

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