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

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.