The Union Finance Ministry on Thursday mentioned ‘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 gathering GST for rents as much as ₹1,000 per day after the choices on the suggestions of the forty seventh GST Council assembly got here into impact from July 18, 2022.
As per the advice, lodge rooms having room rents as much as ₹1,000 per day had been introduced beneath 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 of a charitable or spiritual belief, the Central Board of Oblique Taxes beneath the Finance Ministry mentioned in a collection of tweets.
There’s 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 ₹1,000 per day, it mentioned, including this exemption continues to be in drive with none change.
This exemption is on the market as per the notification dated June 28, 2017.
“The precincts of a non secular place, by way of above notification, must be given broader which means to incorporate a Sarai even whether it is situated 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 mentioned.
This view has been persistently taken by the Centre even within the pre-GST regime, it mentioned, including that state tax authorities can also 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 could due to this fact avail the above acknowledged exemptions in respect of renting of rooms by them,” it mentioned. PTI DP IJT
August 05, 2022