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2023 (5) TMI 286 - AAR - GSTRequirement of GST registration - liability to pay tax under GST registration - applicant provides accommodation to pilgrims who visit the Ambaji Temple - registered trust under the Bombay Charitable Trust Act - HELD THAT:- In terms of Sr. No. I of the notification No. 12/2017-CT( Rate), services by an entity registered under section 12AA of the Income Tax Act, 1961, by way of charitable activities is exempted. The applicant claims that he falls within the ambit of a similar serial number 1 and 14 of notification No. 9/2017-IT (Rate) which as is mentioned is pari materia to the serial number mentioned above. However, the notification defines 'charitable activities' to include (i) public health, (ii) advancement of religion spirituality, yoga (iii) advancement of educational programmes or skill development and (iv) preservation of environment including watershed, forests and wildlife. The applicant, is a registered trust under the Bombay Charitable Trust Act. They hold 12AA certificate issued by the Income Tax Authorities and in terms of the trust deed, as per applicant, they provide accommodation to the pilgrims who visit the Ambaji Temple for which they charge room rent @ Rs. 1000/- per day. However, there is nothing on record to substantiate the claim that all the accommodation granted are to the pilgrims visiting the Ambaji Temple. Applicability of serial number 13(b) of N/N. 9/2017-IT (Rate) - HELD THAT:- The exemption is for the activity of renting of precincts of a religious place meant for general public, which is,- (a) owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act. 1961 or (b) a trust or an institution registered under sub-clause (v) of clause (23C) of section It) of the Income-tax Act or (c) a body or an authority covered under clause (23BBA) of section 10 of the said Income-tax Act - Further, as per the proviso, the exemption is not applicable in respect of three situations, wherein one of the situations is renting of rooms where charges are one thousand rupees or more per day. The authorized representative of the applicant during the course of personal hearing held on 23.3.2023, was specifically asked as to whether the Nandini Ashram, was owned by the trust managing the Ambaji Temple, to which he answered in negative. On being further asked whether the rooms of Nandini Ashram which they were renting to pilgrims is located in the precincts of the Ambaji Temple, he informed that it was not within the boundary of the temple. Going by the definition of precinct as mentioned above, it is emphatically clear that the applicant is not eligible for the benefit of Sr. No. 13 of the notification. Whether they are liable to pay tax? - HELD THAT:- In terms of Sr. No. 14 of the notification No. 12/2017-CT (Rate), services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff below one thousand rupees per day or equivalent was exempted. However, in terms of notification No. 4/2022-CT (Rate) effective from 18.7.2022, serial number 14 and the entries relating thereto were omitted - the applicant is leviable to GST at the rate of 12%. Whether the applicant is liable for GST registration? - HELD THAT:- In terms of section 22 of the CGST Act, 2017, every supplier shall be liable to be registered from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees.
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