New Delhi. The Central Government has made a big statement regarding the Goods and Service Tax (GST) on Sarais operated by religious or charitable trusts. The Union Finance Ministry on Thursday (August 4) said that inns run by religious or charitable trusts have been exempted from GST. This clarification of the Finance Ministry has come after the demand of various sections including AAP MP Raghav Chadha that GST should be withdrawn on the rent of rooms of religious institutions.
CBIC tweeted the information
The Central Board of Indirect Taxes and Customs (CBIC) on Thursday issued this clarification to clear confusion regarding GST on room rent. The CBIC, under the Finance Ministry, in a series of tweets said that GST will not be applicable on room rent of ‘inns’ run by religious and charitable institutions.
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. (1/9) The correct position is detailed below: @nsitharaman @PIB_India
— CBIC (@cbic_india) August 4, 2022
SGPC started taking GST
In June this year, the GST Council had decided that 12 per cent tax would be levied on hotel rooms priced below Rs 1,000 per day. After the implementation of the GST proposal on rooms renting less than Rs 1,000 on July 18, 2022, some inns run by Shiromani Gurdwara Parbandhak Committee (SGPC) started collecting GST for rooms with rent less than Rs 1,000. On the recommendation of the GST Council, hotel rooms renting Rs 1,000 were brought under the GST slab of 12 per cent from the earlier exempt category.
FIRST PUBLISHED : August 05, 2022, 19:16 IST