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The Central Board of Indirect Taxes and Customs clarifies that residential programmes or camps for the advancement of religion, spirituality or yoga are exempt from GST. This exemption applies when the fee charged includes the cost of boarding and lodging. The primary and predominant activity of the programme or camp must remain the advancement of religion, spirituality or yoga. Charitable or religious trusts must pay tax if they merely or primarily provide accommodation or serve food and drinks against consideration. Activities such as fitness camps or classes in aerobics, dance and music remain taxable.
Who is affected
Exceptions
If you do not comply
Ask about this circular
Circular No. 66/40/2018-GST
F. No. 354/314/2017-TRU Government of India Ministry of Finance Department of Revenue Tax research Unit
Room No. 156, North Block, New Delhi, 26th September 2018
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All)
Madam/Sir,
Subject: GST on Residential programmes or camps meant for advancement of religion, spirituality or yoga by religious and charitable trusts- reg.
Certain representations have been received seeking clarification as regards applicability of GST on residential programmes or camps meant for advancement of religion, spirituality or yoga where the fee charged includes the cost of boarding and lodging.
2.1 The relevant portion reads as under:
"The services provided by entity registered under Section 12AA of the Income Tax Act, 1961 by way of advancement of religion, spirituality or yoga are exempt. Fee or consideration charged in any other form from the participants for participating in a religious, Yoga or meditation programme or camp meant for advancement of religion, spirituality or yoga shall be exempt. Residential programmes or camps where the fee charged includes cost of lodging and boarding shall also be exempt as long as the primary and predominant activity, objective and purpose of such residential programmes or camps is advancement of religion, spirituality or yoga. However, if charitable or religious trusts merely or primarily provide accommodation or serve food and drinks against consideration in any form including donation, such activities will be taxable. Similarly, activities such as holding of fitness camps or classes such as those in aerobics, dance, music etc. will be taxable".
It is accordingly clarified that taxability of the services of religious and charitable trusts by way of residential programmes or camps meant for advancement of religion, spirituality or yoga may be decided accordingly.
Difficulty if any, in the implementation of this Circular may be brought to the notice of the Board.
Yours Faithfully,
(Harish Y N) Technical Officer, TRU Email: harish.yn@gov.in Tel: 011 2309 5547
