GST Applicability on Dharamshala Services where charges are more than Rs 10000/- per day.

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This discussion explores GST applicability on services provided by Dharamshalas, specifically when renting out premises for events like marriages. While renting precincts of a religious place for general public use may be GST-exempt, the consensus suggests Dharamshalas operating for profit are generally subject to GST. An 18% GST rate is mentioned, with a potential exemption if annual gross rent is below £20 lakh.

Chirag Agarwal

Chirag Agarwal (Querist)

23 May 2023 Need expert advise on whether renting of premises by Dharamshala for Marriage and other functions is Chargeable under GST.

If Yes, what is the applicable GST Rate and Service Code.

Regards,
Chirag

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 May 2023 As per GST Law 2017, there is no GST payable on Services by a person by way of renting of precincts of a religious place meant for general public. So the rate of GST payable on Services by a person by way of renting of precincts of a religious place meant for general public is nil rate.

Chirag Agarwal

Chirag Agarwal (Querist)

23 May 2023 Dharamshala is not a religious place, as person gives it on rent for the purpose of earning some profit and not for charity or spirituality.

I need to know whether any exemptions available to such Premises.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 May 2023 18% GST applicable.
No GST if annual gross rent received less than 20 lacs.

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