Services given by charitable or religious trust are for the betterment of society. Therefore, few services given by charitable trust are kept out of the purview of Goods and Services Tax (GST). Let’s have a look at such services.

Services by an entity registered under section 12AA of the Income Tax Act, 1961 shall be eligible for exemption of Goods and Services Tax. Such entities provide services by way of Charitable Activities.

Charitable Activities means activities relating to:

  1. Services for public health like:
    1. Care or counseling of terminally ill persons or persons with severe physical or mental disability;
    2. Persons afflicted with HIV or AIDS;
    3. Persons addicted to a dependence-forming substance such as narcotics drugs or alcohol;
  2. Public awareness of preventive health, family planning or prevention of HIV infection;
  3. Advancement of religion, spirituality or yoga;
  4. Advancement of educational programs or skill development relating to:
    1. Abandoned, orphaned or homeless children;
    2. Physically or mentally abused and traumatized persons;
    3. Prisoners; or
    4. Persons over the age of 65 years residing in a rural area;
  5. Preservation of environment including watershed, forests and wildlife.

The following services relating to Religious Activities also comes under the exemption list of GST.

Services by a person by way of-

  1. Conduct of any religious ceremony;
  2. 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 Income-tax Act: Provided that nothing contained in (b) of this exemption shall apply to,-
  • Renting of rooms where charges are Rs.1000/- or more per day;
  • Renting of premises, community halls, kalyanmandapam or open area, etc where charges are Rs. 10,000/- or more per day;
  • Renting of Shops or other spaces for business or commerce where charges are Rs. 10000 or more per

Secondly, in case of services provided by a specified organisation in respect of a religious pilgrimage facilitated by the Ministry of External Affairs, the Government of India, under bilateral arrangement.

Specified organisation means

  1. Kumaon Mandal Vikas Nigam Limited, a Government of Uttarakhand Undertaking or
  2. Haj Committee of India and State Haj Committee constituted under the Haj Committee Act, 2002 for making arrangements for the pilgrimage of Muslims of India for Haj.

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