GST is payable on renting of temporary residential rooms for consideration to the devotees only if the room rent per day is Rs. 1,000/- or more as per Entry 13 of Notification 12/2017.
Rate of tax (service)— In the instant case, the applicant is a religious institution and is temporarily renting residential rooms for consideration and similarly they are also renting space for stalls for consideration.
Question raised before this authority is as follows—
1. Whether Applicant is liable to pay tax on renting of temporary residential rooms for consideration to the devotees and renting of space for shops and stalls for the purpose of religious programmers where the predominant object is not to do business but for advancement of religion?
2. Whether Applicant is liable to pay tax on renting of temporary residential rooms as per the following categories, to the devotees to stay for the purpose of religious programs where charges per room is less than one thousand per day, if answer to the question 1 is yes?
(i) Category-I, Premium 2 BHK 568.30 Sq Ft including facilities such as water, electricity, cot, bed, pillow, bedspread, Two Air Conditioned rooms, hall, kitchen, Two: toilets (One attached) With cooking facility and No cleaning services (Not charged given free of cost to the organizing members)
(ii) Category-II, Semi Premium 2 BHK 437.70 Sq Ft. including facilities such as water, electricity, cot, bed, pillow, bedspread, Two Air Conditioned rooms, hall kitchen, One toilets and one bathroom. With cooking facility and No cleaning services. (Not charged given free of cost to the organizing members)
(iii) Category-III, 2 BHK 437.70 Sq. Ft. including facilities such as water, electricity, cot, bed pillow, bedspread. Two rooms (One Air Conditioned room and another non air conditioned room), hall, kitchen, One toilets and one bathroom with cooking facility and No cleaning services
(iv) Category-IV, 1 BHK Cottage 232.80 Sq. Ft including facilities such as water, electricity, cot, bed, pillow, bedspread, one Air Conditioned Bed rooms, hall, kitchen, rest room + toilet. With cooking facility and No cleaning services.
(v) Category-V, Single Room Kutir…. Sq Ft, including facilities such as water, electricity, cot, bed, pillow, bedspread, having, one toilet attached No cleaning & cooking services.
(vi) Category-VI, Dormitory consisting 12 beds, including facilities such as water, electricity, Two AC, Cot, bed, pillow, bedspread common rest rooms and toilets. (Not charged given free of cost to the staff and working members in the premises.)
3. Whether Applicant is liable to pay tax on renting of space for stalls, where the predominant object is not to do business but for advancement of religion if answer to the question 1 is yes?
4. Whether Applicant is liable to pay tax on supply of food and beverages at subsidized rates to the devotees, where the predominant object is not to do business but for advancement of religion?
5. Whether Applicant is liable to pay tax on providing space for registered person without consideration for supply food and beverages to the devotees, where consideration received by registered person directly from devotees?
6. Whether Applicant is liable to pay tax for acting intermediary for booking hotel rooms to the pilgrims from outside?
There are 2 Entries in the exemption notification 12/2017 pertaining to persons registered under Sec 12AA of the Income Tax Act. Whereas the Entry 1 is a general entry, the Entry 13 is a special entry covering renting of premises, rooms, shops etc., by a person registered under Sec 12AA of Income Tax Act.
Held that— Applicant is liable to pay tax on renting of temporary residential rooms for consideration to the devotees and renting of space for shops and stalls for the purpose of religious programmers where the predominant object is not to do business but for advancement of religion.
Renting of shops for business where charges are Rs. 10,000/- or more per month are taxable.
GST is payable on renting of temporary residential rooms for consideration to the devotees only if the room rent per day is Rs. 1,000/- or more as per Entry 13 of Notification 12/2017.
Rate of tax (service)— In the instant case, the applicant is a religious institution and is temporarily renting residential rooms for consideration and similarly they are also renting space for stalls for consideration.
Question raised before this authority is as follows—
1. Whether Applicant is liable to pay tax on renting of temporary residential rooms for consideration to the devotees and renting of space for shops and stalls for the purpose of religious programmers where the predominant object is not to do business but for advancement of religion?
2. Whether Applicant is liable to pay tax on renting of temporary residential rooms as per the following categories, to the devotees to stay for the purpose of religious programs where charges per room is less than one thousand per day, if answer to the question 1 is yes?
(i) Category-I, Premium 2 BHK 568.30 Sq Ft including facilities such as water, electricity, cot, bed, pillow, bedspread, Two Air Conditioned rooms, hall, kitchen, Two: toilets (One attached) With cooking facility and No cleaning services (Not charged given free of cost to the organizing members)
(ii) Category-II, Semi Premium 2 BHK 437.70 Sq Ft. including facilities such as water, electricity, cot, bed, pillow, bedspread, Two Air Conditioned rooms, hall kitchen, One toilets and one bathroom. With cooking facility and No cleaning services. (Not charged given free of cost to the organizing members)
(iii) Category-III, 2 BHK 437.70 Sq. Ft. including facilities such as water, electricity, cot, bed pillow, bedspread. Two rooms (One Air Conditioned room and another non air conditioned room), hall, kitchen, One toilets and one bathroom with cooking facility and No cleaning services
(iv) Category-IV, 1 BHK Cottage 232.80 Sq. Ft including facilities such as water, electricity, cot, bed, pillow, bedspread, one Air Conditioned Bed rooms, hall, kitchen, rest room + toilet. With cooking facility and No cleaning services.
(v) Category-V, Single Room Kutir…. Sq Ft, including facilities such as water, electricity, cot, bed, pillow, bedspread, having, one toilet attached No cleaning & cooking services.
(vi) Category-VI, Dormitory consisting 12 beds, including facilities such as water, electricity, Two AC, Cot, bed, pillow, bedspread common rest rooms and toilets. (Not charged given free of cost to the staff and working members in the premises.)
3. Whether Applicant is liable to pay tax on renting of space for stalls, where the predominant object is not to do business but for advancement of religion if answer to the question 1 is yes?
4. Whether Applicant is liable to pay tax on supply of food and beverages at subsidized rates to the devotees, where the predominant object is not to do business but for advancement of religion?
5. Whether Applicant is liable to pay tax on providing space for registered person without consideration for supply food and beverages to the devotees, where consideration received by registered person directly from devotees?
6. Whether Applicant is liable to pay tax for acting intermediary for booking hotel rooms to the pilgrims from outside?
There are 2 Entries in the exemption notification 12/2017 pertaining to persons registered under Sec 12AA of the Income Tax Act. Whereas the Entry 1 is a general entry, the Entry 13 is a special entry covering renting of premises, rooms, shops etc., by a person registered under Sec 12AA of Income Tax Act.
Held that— Applicant is liable to pay tax on renting of temporary residential rooms for consideration to the devotees and renting of space for shops and stalls for the purpose of religious programmers where the predominant object is not to do business but for advancement of religion.
Renting of shops for business where charges are Rs. 10,000/- or more per month are taxable.