Celebrate Freedom and save 20% OFF on CAclubindia Pro Subscription! Use code: FREEDOM20

Exemption from GST

08 May 2020

If I have rented some vacant rooms for commerical shops and also have constructed a small temple beside it, will the income be exempted , as it is in the precincts of religious premises?

Reply
Follow
Share

2 Replies

CA KAMAL MADAN (CHARTERED ACCOUNTANT) (147 Points)
Replied 08 May 2020

Renting of immovable property for Commercial purpose attract 18% GST rate under SAC code 9972. The registered person needs to raise Tax invoice to charge GST.

However GST is exempt in case of services by way of 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 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 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.

In your case if rent is 10000 or more then gst will be applicable.

Upgrade to CAclubindia Pro. Subscribe Now!

Rajendra Prabhu (Associate ) (59 Points)
Replied 08 May 2020

Dear Harshit Acharya,

I agree with CA Kamal Madan ji, regarding relevant provision to verify whether rent is exempt or not. In my view it is important to verify whether temple is under trust registered as per the provisions of Income tax before applying the criteria of rent amount