Order Date – 26 April 2023

Facts – 

• The Applicant, Nandini Ashram Trust, is a registered trust under the Bombay Charitable Trust Act. They also hold 12AA certificate issued by the Income Tax Authorities. ln terms of the trust deed the applicant provides accommodation to pilgrims who visit the Ambaji Temple. The applicant states that their room rent is Rs. 1000/- per day.

Issue – 

• Whether the applicant is liable the GST registration?

Order – 

• The AAR observed that in terms of Sr. No. 1 of the notification No. 12/2017-CT(Rate), services by an entity registered under section 12AA of the Income Tax Act, 1961, by way of charitable activities is exempted. However, the notification defines 'charitable activities' to include (i) public health, (ii) advancement of religion spirituality, yoga (iii) advancement of educational programmes or skill development and (iv) preservation of environment including watershed, forests and wildlife.
• Further, as per the serial number 13(b) of the notification, the exemption is not applicable in respect of three situations, wherein one of the situations is renting of rooms where charges are one thousand rupees or more per day.
• The rooms of Nandini Ashram which they were renting to pilgrims was not within the boundary of the temple. Thus, it is emphatically clear that the applicant is not eligible for the benefit of Sr. No. 13 of the notification.
• The applicant is liable for GST registration in terms of section 22 of the CGST Act, 2017, subject however to the threshold limit of his aggregate turnover exceeding rupees twenty lac rupees. The applicant is liable to pay CST in terms of notification No. 20/2019- Central Tax (Rate) dated 30.9.2019 as amended vide notification No. 3/2022- CT (Rate) dated 13.7.2022, effective from 18.7.2022.