The Government of India has issued a Circular No. 66/40/2018-GST dated September 26, 2018 which clarifies the following issues which are meant for advancement of religion, spirituality or yoga by religious and charitable trusts. The gist of the circular is explained below.
- Any services provided by entity registered under Section 12AA of the Income Tax Act, 1961 by way of advancement of religion, spirituality or yoga are exempt.
- Any fee or consideration charged in any other form from the participants for participating in a religious, Yoga or meditation programme or camp meant for advancement of religion, spirituality or yoga shall be exempt.
- Any Residential programmes or camps where the fee charged includes cost of lodging and boarding shall also be exempt. However, if charitable or religious trusts merely or primarily provide accommodation or serve food and drinks against consideration in any form including donation, such activities will be taxable.
- Similarly, activities such as holding of fitness camps or classes such as those in aerobics, dance, music etc. will be taxable.