GST Applicable on Ashram Trust providing accommodation to pilgrims visiting Ambaji Temple: AAR

The applicant is a registered trust under the Bombay Charitable Trust Act. They also hold a 12AA certificate issued by the Income Tax Authorities. ln
terms of the trust deed the applicant provides accommodation to pilgrims who visit the Ambaji Temple. The applicant further states that their room rent is Rs. 1000/- per day.

It is the applicant’s averment that in terms of notification No. 9/2017- Integrated Tax (Rate), dated 28.6.2017, a registered trust holding a 12AA certificate is exempt from GST. The applicant has further relied upon the GST Council meeting no.47 held on 18.7.2022 to submit that GST tax is applicable to the hotel, guest house and Sarai whether the rent of the room is Rs. 1,000/-. Thereafter on 4.8.2022, the applicant states that on Twitter it was informed that Sarais run by the religious or charitable trusts are exempt from GST irrespective of rent.

In view of the foregoing, the applicant has filed this application seeking advance ruling on the below-mentioned questions viz

1. Whether they are liable the GST registration?

2. Whether they are liable to pay tax under GST registration.

Advance Ruling:

The Applicant is liable for GST registration in terms of section 22 of the CGST Act, 2017, subject however to the threshold limit of his aggregate turnover exceeding rupees twenty lac rupees.

The applicant is liable to pay GST in terms of notification No. 20/2019- Central Tax (Rate) dated 30.9.2019, as amended, vide Notification No. 3/2022-CT (Rate) dated 13.7.2022, effective from 18.7.2022.

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