No GST On ‘Sarais’ Run By Religious, Charitable Trusts: Govt

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Mumbai: Refuting certain media and social media reports claiming that GST has been imposed on ‘Sarais’ run by religious/charitable trusts, the Central Board of Indirect Taxes and Customs (CBIC) said, “This is not true.”

“Some sections of the media and social media are spreading the message that GST has been implemented recently from July 18, 2022, even on ‘Sarais’ run by religious/ charitable trusts. This is not true,” the Central Board of Indirect Taxes and Customs (CBIC) posted on Twitter as part of a series of tweets.

Based on the recommendations of the 47th GST Council meeting held in Chandigarh, the GST exemption on room rent up to Rs 1,000 per day on “hotel accommodation” has been withdrawn, and is now taxed at 12 per cent.

Several leaders of the Shiromani Gurdwara Parbandhak Committee and the Aam Aadmi Party, especially Raghav Chadha, a prominent Sikh organization, demanded the withdrawal of GST on such houses.

The clarification from the central government came after Chadha, a Rajya Sabha member, met Union Finance Minister Nirmala Sitharaman on Thursday, seeking withdrawal of GST on such residences, including an inn for devotees of the holy Shri Harmandir Sahib in Amritsar.

In another tweet, the CBIC said: “However, there is another exemption which exempts renting of rooms in religious precincts by a charitable or religious trust, where amount charged for the room is less than Rs. 1000/- per day. This exemption continues to be in force without any change.”

CBIC quoting reports stated that the three Sarais — Guru Gobind Singh NRI Niwas, Baba Deep Singh Niwas, Mata Bhag Kaur Niwas — managed by SGPC in Amritsar have started paying GST with effect from July 18.

“In this regard it is to clarify that no notice has been issued to any of these Sarais. These Sarais may have on their own opted to pay GST.”

This view was being consistently taken by the Centre even in the pre-GST regime, it said.

“State Tax authorities may also take the same view in their jurisdiction. These Sarais managed by SGPC may therefore avail the above stated exemptions in respect of renting of rooms by them,” another CBIC tweet said.


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