Law Legends


Gst Applicability On Renting Of Precincts Of A Religious Place

As per Notification No.12/2017-Central Tax (Rate) dated 28th June 2017, entry no 13(b), Renting precincts of a religious place, which is intended for use by the general public and is owned by an entity registered as a charitable or religious trust under Section 12AA of the Income-tax Act, 1961, or a trust or institution registered under sub-clause (v) of clause (23C) of Section 10 of the Income-tax Act, or a body or authority covered under clause (23BBA) of Section 10 of the said Income Tax Act, is exempt from GST, provided that the consideration charged for such renting does not exceed the prescribed ceiling limits as specified in the relevant entry. Thus, this exemption is determined on the basis of amount of consideration charged for such renting.

Interpretation of Exemption of GST on religious ceremony renting of Precincts of a Religious place:

A religious place refers to a location primarily designated for the purpose of engaging in religious activities such as prayers, worship related to a specific faith, meditation, or spiritual practices.


General public

to mean “the body of people at large sufficiently defined by some common quality of public or impersonal nature”.

The term precincts should encompass all immovable property situated in the immediate vicinity and surroundings of the religious place, which is either owned by the religious place itself or managed by the same entity as the religious place. Property managed by the same entity as the religious place can also be regarded as part of the religious place's precincts.


Scope of Exemption
Eligible Person What is exempt Exemption Limit
Any Person Renting of Precincts of a religious place meant for general public. The exemption mentioned in clause (b) will not be applicable under the following circumstances:

1.     When rooms are rented for Rs. 1,000 or more per day.

2.     When premises, community halls, kalian mandapam, open areas, etc., are rented, and the charges are Rs. 10,000 or more per day.

3.     When shops intended for business and commerce are rented, and the charges are Rs. 10,000 or more per month.


Example: Godavari Trust, a religious trust registered under section 12AB of the Income Tax Act, owns and manages a temple in their locality. They rent out commercial shops located within the temple's precincts for a monthly rent of Rs.11,000 per shop. It's important to note that the consideration received in this case is subject to GST, as the exemption from GST applies only when the consideration for such services is less than Rs. 10,000 per month.

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