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

Some ‘inns’ of Shiromani Gurdwara Prabandhak Committee (SGPC) have started collecting GST on rent on their own. 1,000 per day from July 18, 2022 after the decisions on the recommendations of the 47th GST Council meeting come into effect.

As per the recommendations of the GST Council meeting, hotel rooms with room rent 1,000 per day was brought under the GST rate slab of 12 per cent from the earlier exempted category.

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However, GST is not applicable on room rent in a religious premises by a charitable or religious trust, the Central Board of Indirect Taxes said in a series of tweets.

CBIC cited this as another exemption that exempts rooms from being rented in religious premises by a charitable or religious trust, where the amount charged for the room is less than 1,000 per day. Also, it added that the exception continues without any change and is available as per the notification dated June 28.

“In the context of the above notification, broad meaning should be given to the extent of a religious place, even if it is situated outside the boundary wall of the premises of a religious place, in the vicinity, and managed by it, to include an inn. Broader meaning should be given to the same trust/management,” another tweet said.

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

“These inns managed by SGPC can get the benefit of the above exemption in respect of room rental by them,” it said.

with PTI input

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