The Appellate Authority of Advance Ruling has held that religious trusts who are offering temporary stay to devotees. The applicant, a religious trust sought an advance ruling on whether GST is applicable on renting of temporary residential spaces to devotees and renting of space for shops and stalls for the sole purpose of religious programs where the predominant objective of the act of renting is not business but the advancement of religion.
The applicant claimed that the activity of renting of precincts of a religious place meant for general public owned by an entity registered under specified sections of the Income Tax Act should be subject to the consideration charged for such renting not exceeding the prescribed capping is exempt from tax.
While the AAR accepted the above contention, it held that GST is applicable on leasing out 2 BHK units and dormitories including renting of temporary residential rooms for consideration to the devotees or renting of space for shops and stalls.
