GST on religious and charitable institutions

As a charitable and religious trust, you're venturing into commercial activities by opening a complex with shops.

Let's break down the GST implications:

1. Mandatory GST Registration GST registration is mandatory if your annual turnover exceeds ₹40 lakhs (₹20 lakhs for special category states).

 Since you're generating revenue through rent, you'll need to consider the rental income while calculating your turnover.

 2. GST on Rent Rent from commercial properties is taxable under GST. The GST rate applicable would depend on the type of property and services provided. Typically, the GST rate for commercial rents is 18%.

 3. Threshold Limit As mentioned earlier, the threshold limit for GST registration is ₹40 lakhs (₹20 lakhs for special category states). However, there are specific exemptions and thresholds for certain types of businesses, such as: - ₹20 lakhs for businesses providing services, including renting of commercial properties. - ₹40 lakhs for businesses involved in supplying goods.

4. GST Exemption Criteria To qualify for GST exemption, you'll need to meet specific conditions: - Your trust should be registered under Section 12AA or 12AB of the Income-tax Act, 1961. -

The rental income should be used solely for charitable or religious purposes. - You should not be engaged in any commercial activities other than renting out the shops.

 Additionally, you may need to obtain a GST registration certificate, even if you're exempt, to claim input tax credits or to comply with other GST provisions.

Excuse me sir.. it also depends upon the rate of rent right? Where the rent exceeds ₹10,000 per month their service becomes taxable. Am I correct?