Exemption related to Religious sector [ Entry No. 13 ] - GST Ready Reckoner - GST

Exemption related To religious sector Entry No. 13 Services by a person by way of- Conduct of any religious ceremony; 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, 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 Income-tax Act Provided that in entry (b) of this exemption shall no apply if; renting of rooms where charges are 1000/- or more per day ; renting of premises, community halls, kalyan mandapam or open area , etc where charges are 10,000/- or more per day ; renting of shops or other spaces for business or commerce where charges are 10,000/-or more per month . Scope of Exemption Who is eligible What specifically is exempt Limits for exemption. Any Person Conduct of Religious ceremony No conditions Any Person Renting of Precincts of a religious place meant for general public. The exemption as contained in clause (b) shall not be available if: 1) Rooms are rented for ₹ 1000/- or more per day; 2) Renting of premises, community halls, kalyan mandapam or open area, etc where charges are ₹ 10,000/- or more per day; 3) Renting Shops for business and commerce for 10000/- or more per day. Explanation The word Religious ceremony has not been defined under the Service Tax Law or GST Act, but it can include special religious poojas conducted by a person authorized by such religion. Occasions like birth, death and marriage ceremony involve religious ceremonies. as per para 2(zy) Notification No. 12/2017- Central Tax (Rate) specifies Religious Place to mean a place which is primarily meant for conduct of prayers or worship pertaining to a religion, meditation or spirituality. general public to mean the body of people at large sufficiently defined by some common quality of public or impersonal nature . In simple words general public means ordinary people in the society rather than people who are considered to be important or who belong to a particular group. The word precincts has not been defined under the Act. However, the CBEC had clarified in the context of Service Tax laws that the word Precincts should be considered as all immovable property of the religious place located within the outer boundary wall of the complex (of building and facilities) in which religious place is located , as being located in the precincts of the religious place. The immovable property located in the immediate vicinity and surrounding of the religious place and owned by the religious place or under the same management as the religious place or under the same management as the religious place may be considered as being located in the precincts of religious place. Examples Mr A, a priest, charged ₹ 51000/- for services provided to Mr B for conducting his marriage ceremony at Church. Service by any person by way of conduct of any religious ceremony would be exempt from GST as the same is covered under clause (a). T Classes took a hall on rent for its last day revision batch in the precincts of a temple owned by a charitable trust at the rent of ₹ 9000/- per day. It would be exempt from GST as it is not specified anywhere that renting of precincts of religious place should be for particular purpose i.e. renting can be for any purpose but the rent charged should be less than ₹ 10000/- per day. If in the above example (b), the rent charged is ₹ 10000/- per day, then GST would be leviable since the rent per day is equal or more than 10000.