Exemption to a religious trust under GST

[Mangala G]

Our client is a religious trust registered under Section 12 AA of the Income Tax Act. It owns several residential flats.

Can a residential flat be rented out for commercial purpose (To professionals-CA/Doctors/Lawyers)? If yes, can exemption be claimed under Sl.No 13 of Notification 12/2017 Central Tax (Rate)? If yes, Is exemption available under b(ii) or b(iii) of the said Sl.No?

Thanks

AI Summary

Religious trust can't claim tax exemption when renting residential flats for commercial use under Notification 12/2017. A religious trust registered under Section 12 AA of the Income Tax Act inquired about the possibility of renting its residential flats for commercial purposes, such as to professionals like doctors, lawyers, and chartered accountants, and whether it could claim an exemption under Sl.No 13 of Notification 12/2017 Central Tax (Rate). The responses clarified that if the residential flat is rented out for commercial use, the exemption is not applicable, except for the threshold exemption limit. Additionally, the specific clauses referenced do not cover such rentals, making them taxable under the GST provisions.