No GST applicable on rental of ‘sarais’ under religious or charitable trust: Centre

New Delhi: The Central Government on clarified that no Goods and Services Tax (GST) on the premises of religious or charitable trusts has been levied by thr government.

The Central Board of Indirect Taxes and Customs has made this claim in a series of tweets. The board said that the illusion has spread due to wrong reports from some sections of the media.

In the series of tweet, CBIC clarified that Certain sections of the media and social media are spreading the message that GST has recently been imposed with effect from 18 July, 2022 even on ‘Sarais’ run by religious/charitable trusts. This is not true.

“Based on the recommendations of the 47th GST Council meeting, GST exemption on hotel rooms having room rent upto Rs. 1000 per day has been withdrawn. They are now taxed at 12%,” it said adding that the three Sarais managed by SGPC in Amritsar have started paying GST with effect from 18.7.2022. These three Sarais are:

1. Guru Gobind Singh NRI Niwas

2. Baba Deep Singh Niwas

3. Mata Bhag Kaur Niwas.

Therefore, 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.