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.

[Ganeshan Kalyani]

GST is applicable on the value of supply. If the value of the supply is NIL, then in my view there is no GST.

[ANITA BHADRA]

According to Section 9 of CGST Act, there is a charge implied on supply.

Supply in further terms has been defined under Section 7 of the Act - Any transaction involving supply of goods or services without consideration is not a supply, barring few exceptions ( Letting out premises free of cost does not falls under these exemptions )

In the given case , applicant is letting out premises free of cost , there is no supply .

Since , there is no supply , question of exemption does not arises

[Rajagopalan Ranganathan]

Sir,

Schedule I of CGST Act, 2017 lists ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION. In this list "letting out of Mandap or function hall free of cost for the religious and social functions is not included. Therefore if you do not charge for the service, then the transaction value will be nil and hence gst chargeable is also nil.

[KASTURI SETHI]

I concur with the views of the experts.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Rajagopalan sir

AI Summary

Supply without consideration: letting function halls free is not treated as supply for GST, so no tax liability.
Whether letting mandaps or function halls free of charge attracts GST turns on whether the transaction is a supply. GST applies to the value of supply; transactions without consideration are not supplies except for activities expressly treated as supply. Letting a mandap or function hall free for religious or social functions is not listed among activities treated as supply, so the transaction value is nil and no GST is chargeable.