Services by a person by way of-

  • conduct of any religious ceremony;
  • renting of precincts of a religious place meant for the general public, owned or managed by an entity registered as a charitable or religious trust registered under section 12AA of the Income-tax Act, 1961 or a trust or an institution registered under section 10(23C) of the Income-tax Act or a body or an authority covered under section 10(23BBA) of the said Income-tax Act.

Nothing held in entry (b) of this exemption shall apply to-

  1. renting of rooms where charges `rupee 1,000 or more per day;
  2. renting of premises, community halls, Kalyan mandapam or open area, and the like where charges `rupee 10,000 or more per day


In order to claim exemption, the following two conditions must be satisfied: –

  1. The entity should be registered under section 12AA of the Income Tax Act, 1961.
  2. The entity must carry out one or more of the charitable activities.

Let us first know the meaning of the term ‘charitable activities’.

Charitable activities’ mean activities: –

(i) PUBLIC HEALTH by way of-

  1. care or counseling of
    1. terminally ill persons or persons with severe physical or mental disability;
    2. persons afflicted with HIV or AIDS;
    3. persons addicted to dependence-forming stuff such as narcotics drugs or alcohol; or 
  2. Public knowledge of preventive health, family planning or prevention of HIV infection

(ii) expansion of religion, spirituality or yoga; 

(iii) DEVELOPMENT relating to, –

  • abandoned, orphaned or homeless children;
  • physically or mentally abused persons;
  • prisoners; or

(iv) Safety/PRESERVATION OF ENVIRONMENT including watershed, forests & wildlife.

Only those services provided by charitable and religious trusts which fulfill and meet the above definition of charitable activities are eligible for exemption from GST. There could be many other services provided by such charitable and religious trusts which do not meet the definition of charitable activities and hence, such services would attract GST.

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