What will be the GST on room rent?
What will be the GST on room rent below Rs.1000/- in case of Charitable Trust? For Example, If a person stays in Room for Rs.800 per day for two days and pays Rs.1600 then is he liable to pay GST on Rs.1600/-?
GST law has chalked out GST exemptions when a charitable trust rents out religious meant for general public (owned and managed by a registered charitable trust under 12AA of the Income Tax Act, 1961). GST will be exempted when:
- Rent out rooms are charged lesser than Rs.1,000 a day
- Kalyanamandapam or an open area is charged lesser than Rs.10,000 a day
- Rent out shops and other spaces for business are charged less than Rs.10,000 a month
So In your case, one-day room rent is 800 that is exempted from GST.