Page 48 - CA Final GST

Badlani Classes

(c) conduct of any religious ceremony;
(d) 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
section 10(23C)(v) of the Income-tax Act or a body or an authority covered under
section 10(23BBA) of the said Income-tax Act.
However, nothing contained in entry (b) of this exemption shall apply to-
(iv) renting of rooms where charges are Rs.1,000 or more per day;
(v) renting of premises, community halls, kalyan mandapam or open area, and the
like where charges are Rs.10,000 or more per day;
(vi) renting of shops or other spaces for business or commerce where charges are
Rs.10,000 or more per month.
❖ “General public” means the body of people at large sufficiently defined by some
common quality of public or impersonal nature .[Para 2(zc) of Notification No.
12/2017 –CT (Rate)]
❖ “Religious place” means a place which is primarily meant for conduct of prayers or
worship pertaining to a religion, meditation, or spirituality. [Para 2(zy) of Notification
No. 12/2017 –CT (Rate)]
Other Aspects:
(i) Religious ceremonies – are life-cycle rituals including special religious poojas
conducted in terms of religious texts by a person so authorized by such religious texts.
Occasions like birth, marriage, and death involve elaborate religious ceremonies.
(ii) Interpretation of term “precincts” as appearing in Exemption Entry – The
immovable property located in the immediate vicinity and surrounding of the
religious place and owned by the religious place or under the same management as
the re3ligious place, may be considered as being located in the precincts of the
religious place and extended the benefit of exemption.
Que. M/s X, an entity registered as religious trust u/s 12AA of the Income-tax Act, 1961, has
furnished you the following details with respect to the activities undertaken by it. You are
required to compute its value of taxable supply from the information given below:
Particulars `
Renting of room where charges are `500 per day 6,00,000
Renting of room where charges are `1,500 per day 9,00,000
Renting of community halls where charges are `25,000 per day 10,00,000
Renting of kalyanmandapam where charges are `5,000 per day 7,50,000
Renting of shops for business where charges are `15,000 per month 7,50,000
Renting of shops for business where charges are `5,000 per month 5,50,000

Ans. Computation of GST liability of X (amount in `)
Renting of room where charges are `500 per day Nil
Renting of room where charges are `1,500 per day 9,00,000
Renting of community halls where charges are `25,000 per day 10,00,000
Renting of kalyanmandapam where charges are `5,000 per day Nil
Renting of shops for business where charges are `15,000 per month 7,50,000
Renting of shops for business where charges are `5,000 per month Nil
Value of Taxable supply 26,50,000 Page47

Central Goods & Services Tax Act, 2017