TMI Blog2023 (5) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in terms of notification No. 9/2017-Integrated Tax (Rate), dated 28.6.2017, a registered trust holding 12AA certificate is exempt from GST. The applicant has further relied upon the GST Council meeting no. 47 held on 18.7.2022 to submit that GST tax is applicable to guest house and Sarai whether the rent of room is Rs. 1,000/- (sic). Thereafter on 4.8.2022, the applicant states that on twitter it was informed that Sarais run by religious or charitable trust are exempt from GST irrespective of rent. 5. In view of the foregoing, the applicant has filed this application seeking advance ruling on the below mentioned questions viz 1. Whether they are liable for GST registration? 2. Whether they are liable to pay tax under GST registration. 6. During the course of personal hearing held on 23.3.2023, Shri Moin Mansuri, the authorized representative of the applicant, reiterated the submission. Discussion and findings 7. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eading of Section 9 Services by a person by way of- (a) conduct of any religious ceremony; (b) renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) or a trust or an institution registered under sub-clause (v) of clause (23C) of section 10 of the Income-tax Act or a body or an authority covered under clause (23BBA) of section 10 of the said Income-tax Act : Provided that nothing contained in entry (b) of this exemption shall apply to,- (i) renting of worms where charges are one thousand rupees or more per day: (ii) renting of premises, community halls, kalyanmandapam or open area, and the like where charges are ten thousand rupees or more per day: (iii) renting of shops or other spaces for business or commerce where charges are ten thousand rupees or more per month. Nil Nil (r) charitable activities means activities relating to - (i) public health by my of- (A) care or co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpt front GST, income from the activities other than those mentioned above is taxable . Thus, there could be many services provided by charitable and religious trust which are not considered as charitable activities and hence, such services come under the GST net. The indicative list of such services could be renting of premises by such entities, grant of sponsorship and advertising rights during conduct of events/functions etc. 13. We would now like to examine it in terms of serial number 13(b) of the notification, as mentioned supra. We find that the exemption is for the activity of renting of precincts of a religious place meant for general public, which is,- owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act. 1961 (hereinafter referred to as the Income-tax Act) or a trust or an institution registered under sub-clause (v) of clause (23C) of section It) of the Income-tax Act or 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 situation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ligible for the benefit of Sr. No. 13 of the notification supra. 16. Moving on to the second question as to whether they are liable to pay tax. We find 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. Thereafter, vide notification No. 20/2019-Central Tax (Rate) dated 30.9.2019. effective from 1.10.2019, the rate of CGST was fixed as under: CGST rates for Intra-State supply of specified services - Amendment to Notification No. 11/2017-C.T. (Rate) In exercise of the powers conferred by sub-sections (1), (3) and (4) of section 9, subsection (1) of section 11, subsection (5) of section 15, subsection (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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