GST levy on rental income of Charitable entity

By | September 1, 2018
(Last Updated On: September 1, 2018)

 If Charitable religious entity ( registered under Section 12AA of Income Tax act  ) Receive rental income from building not situated within premises. Will it be liable for GST ?

There is NIL GST on the following

Services by a person by way of—

(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 rooms 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.

[ Note Precincts not defined in GST Act. Dictionary meaning : Precincts: the area within the walls or perceived boundaries of a particular building or place.

[ Entry No 13 of NOTIFICATION NO. 12/2017 – CENTRAL TAX (RATE) DATED 28-6-2017 ]

My Opinion

  • If Building is situated in precincts of a religious place meant for general public , and rental income is within Limits of  NOTIFICATION NO. 12/2017 – CENTRAL TAX (RATE) DATED 28-6-2017 then no GST is applicable
  • If Building is situated outside the precincts : then GST is payable on rental income received by Charitable trust

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