The Central Board of Indirect Taxes and Customs ( CBIC ) has clarified that the Goods and Services Tax ( GST ) cannot be levied on residential programmes or camps meant for the advancement of religion, spirituality or yoga where the fee charged includes the cost of boarding and lodging.
The board had been receiving representations on the applicability of tax on the said services.
While addressing the query, the Board pointed out that the Chapter 39 “GST on Charitable and Religious Trusts” of Compilation of 51 GST Flyers updated as on 01.01.2018 deals with the issue.
“The services provided by the 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 the advancement of religion, spirituality or yoga shall be exempt. Residential programmes or camps where the fee charged includes the 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 the 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 said.
“It is accordingly clarified that taxability of the services of religious and charitable trusts by way of residential programmes or camps meant for the advancement of religion, spirituality or yoga may be decided accordingly,” the Board said.
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