Clarification regarding no imposition of GST on 'Sarais' run by religious/charitable trusts



Quick Summary
Recent reports incorrectly suggested that GST had been imposed on 'Sarais' managed by religious or charitable trusts. This is not the case. While GST rules for hotel rooms under £1000 per day have changed, an existing exemption for rooms rented by religious trusts for under £1000 per day remains in effect. The government clarifies that 'Sarais' can still benefit from this exemption, even if located outside the main religious complex, and that any decision by specific Sarais to pay GST was voluntary.

Certain sections of the media and social media are spreading the message that GST has recently been imposed with effect from 18 July, 2022 even on Sarais run by religious/charitable trusts. This is not true. Based on the recommendations of the 47th GST Council meeting, GST exemption on hotel room
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FAQ :

No, this is not true. While GST rules for hotel rooms under £1000 per day have changed, an exemption for rooms rented by religious or charitable trusts for less than £1000 per day continues to be in force.

GST exemption on hotel rooms with a rent of up to £1000 per day has been withdrawn, and these rooms are now taxed at 12%.

Yes, the exemption applies to Sarais managed by a religious or charitable trust, even if they are located outside the boundary wall of the religious place but in the surrounding area.

No, no notice has been issued to any of these Sarais. They may have opted to pay GST on their own accord.

Yes, these Sarais managed by SGPC may avail the existing exemptions in respect of renting of rooms by them.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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