CBIC clarifies on GST imposed on SGPC ‘sarais’ in Amritsar

Chandigarh, August 5: Central Board of Indirect Taxes & Customs (CBIC) gave a clarification on GST imposed on SGPC ‘sarai’ near Golden Temple, Amritsar. The Board claimed that the ‘sarais’ managed by religious and charitable institutions has already been given GST exemption on hotel rooms having room rent upto Rs. 1000 per day. Also Read | Punjab CM announces Rs 40 lakh cash reward for bronze medalist weightlifter Gurdeep Singh Further issuing a statement, CBIC took to their official Twitter handle and clarified that Certain sections of the media and social media are spreading the message that GST has recently been imposed with effect from 18 July, 2022 even on ‘Sarais’ run by religious/charitable trusts. This is not true and stated that based on the recommendations of the 47th @GST_Council meeting, GST exemption on hotel rooms having room rent upto Rs. 1000 per day has been withdrawn. They are now taxed at 12%.

Certain sections of the media and social media are spreading the message that GST has recently been imposed with effect from 18 July, 2022 even on ‘Sarais’ run by religious/charitable trusts. This is not true. (1/9) The correct position is detailed below: @nsitharaman @PIB_India — CBIC (@cbic_india) August 4, 2022

CBIC further tweeted, “However, there is another exemption which exempts renting of rooms in religious precincts by a charitable or religious trust, where amount charged for the room is less than Rs. 1000/- per day. This exemption continues to be in force without any change.” The exemption notification, i.e.,Sl. No. 13 of notification No. 12/2017-CTR dated 28.06.2017 reads as follows: “It has been stated that the three Sarais managed by SGPC in Amritsar have started paying GST with effect from 18.7.2022. These three Sarais are:

1. Guru Gobind Singh NRI Niwas
2. Baba Deep Singh Niwas
3. Mata Bhag Kaur Niwas

In this regard it is to clarify that no notice has been issued to any of these Sarais. These Sarais may have on their own opted to pay GST.”

Certain sections of the media and social media are spreading the message that GST has recently been imposed with effect from 18 July, 2022 even on ‘Sarais’ run by religious/charitable trusts. This is not true. (1/9) The correct position is detailed below: @nsitharaman @PIB_India

— CBIC (@cbic_india) August 4, 2022

CBIC added that broader meaning should be given to any religious place or surroundings, weather it is locate inside or outside the boundary wall of the religious building. This view has been consistently taken by the Centre even in the pre-GST regime. State Tax authorities may also take the same view in their jurisdiction. Also Read | Kuldeep Bishnoi joins BJP a day after leaving Congress These Sarais managed by SGPC may therefore avail the above stated exemptions in respect of renting of rooms by them. -PTC News