Avalara > Blog > Goods and Services Tax > Religious Trust shall pay GST on providing Temporary Stay for Pilgrims

Religious Trust shall pay GST on providing Temporary Stay for Pilgrims

  • Jun 5, 2020 | Divita S Gupta

The Appellate Authority of Advance Ruling has held that religious trusts who are offering temporary stay to devotees. The applicant, a religious trust sought an advance ruling on whether GST is applicable on renting of temporary residential spaces to devotees and renting of space for shops and stalls for the sole purpose of religious programs where the predominant objective of the act of renting is not business but the advancement of religion.

The applicant claimed that the activity of renting of precincts of a religious place meant for general public owned by an entity registered under specified sections of the Income Tax Act should be subject to the consideration charged for such renting not exceeding the prescribed capping is exempt from tax.

While the AAR accepted the above contention, it held that GST is applicable on leasing out 2 BHK units and dormitories including renting of temporary residential rooms for consideration to the devotees or renting of space for shops and stalls. 

Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.

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