Tax Liability for Renting Rooms and Stalls for Non-Religious Purposes

The applicant was found liable to pay tax on renting temporary residential rooms and space for shops and stalls as these activities were not considered directly related to religious purposes. However, if the charges for temporary residential rooms were less than Rs. 1000 per day, they were exempt from tax. Renting space for stalls, supplying food and beverages at subsidized rates, and acting as an intermediary for booking hotel rooms for pilgrims were all deemed taxable activities under GST law, unless specific exemptions or conditions were met.

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Issues Involved:
1. Tax liability on renting temporary residential rooms and space for shops and stalls for religious programs.
2. Tax liability on renting temporary residential rooms with charges less than Rs. 1000 per day.
3. Tax liability on renting space for stalls.
4. Tax liability on supplying food and beverages at subsidized rates to devotees.
5. Tax liability on providing space without consideration for registered persons supplying food and beverages.
6. Tax liability for acting as an intermediary for booking hotel rooms for pilgrims.

Detailed Analysis:

Issue 1: Tax Liability on Renting Temporary Residential Rooms and Space for Shops and Stalls
The applicant argued that their activities are for the advancement of religion and not business, hence should not attract GST. They relied on the Supreme Court's decision in Commissioner of Sales Tax v. Sai Publication Fund, which stated that incidental activities to a charitable purpose are not business. However, the authority found that providing accommodation, renting properties, and booking accommodations are not directly related to religious activities and are considered "supplies" under GST law. Thus, the applicant is liable to pay tax on renting temporary residential rooms and space for shops and stalls.

Issue 2: Tax Liability on Renting Temporary Residential Rooms with Charges Less Than Rs. 1000 Per Day
The authority examined the entries in Notification No. 11/2017 and Notification No. 12/2017. It was determined that services by hotels, inns, guest houses, clubs, or campsites for residential or lodging purposes with a declared tariff below Rs. 1000 per day are exempt from tax. The applicant's temporary accommodations fall under this category, thus exempting them from tax if the charges are less than Rs. 1000 per day.

Issue 3: Tax Liability on Renting Space for Stalls
The authority confirmed that renting space for stalls, even if for religious purposes, is taxable under GST law. The applicant is liable to pay tax on renting space for stalls.

Issue 4: Tax Liability on Supplying Food and Beverages at Subsidized Rates to Devotees
The supply of food and beverages, even at subsidized rates, is considered a taxable supply under GST law. The applicant is liable to pay tax on such supplies.

Issue 5: Tax Liability on Providing Space Without Consideration for Registered Persons Supplying Food and Beverages
Providing space without consideration does not fall under the scope of supply unless the applicant and the registered person are related persons as defined under GST law. If they are related, the transaction is taxable.

Issue 6: Tax Liability for Acting as an Intermediary for Booking Hotel Rooms for Pilgrims
The applicant acts as an intermediary by booking hotel rooms for pilgrims and collecting advance payments. If the applicant meets the conditions of a "pure agent" as defined under GST law, they are not liable to pay tax. However, if they do not meet these conditions, they are liable to tax for acting as an intermediary.

Ruling:
1. The applicant is liable to pay tax on renting temporary residential rooms and space for shops and stalls.
2. The applicant is liable to pay tax on renting temporary residential rooms if the declared tariff is Rs. 1000 or more per day.
3. The applicant is liable to pay tax on renting space for stalls.
4. The applicant is liable to pay tax on supplying food and beverages at subsidized rates to devotees.
5. The applicant is liable to pay tax on providing space without consideration if the applicant and the registered person are related persons.
6. The applicant is liable to tax for acting as an intermediary for booking hotel rooms if they do not satisfy the conditions prescribed for a pure agent.

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