Exemption/ concession provided for Mandap Keepers/Function Halls letting out the premises on free of cost

[Ravikumar Doddi]

Dear sir,

Applicant is mandap keeper/ function halls generally they will charge GST on regular basis but some times they will let out free of cost for the religious and social functions is there any exemption of GST on free let out or any concession in GST given to them.kindly support with appropriate section in CGST Act or circular, they are not registered under Section 12AA of Income tax Act (Charitable Institution.

AI Summary

GST Not Applicable on Free Premises Rental for Religious and Social Functions per CGST Act, Schedule I Exclusions. A mandap keeper inquired about the applicability of GST when letting out premises free of charge for religious and social functions. Several experts responded, clarifying that GST is applicable on the value of supply. Since letting out premises free of cost results in a supply value of nil, GST is not applicable. They referenced the CGST Act, noting that transactions without consideration do not constitute supply, and Schedule I does not include such activities as taxable. Consequently, no GST is chargeable when the premises are provided without cost.