Introduction: AAR Rajasthan Ruling on Temple Entry Fee GST Exemption

In a recent ruling by the Authority for Advance Rulings (AAR) Rajasthan, the case of Shri Digamber Jain Sidhkut Chaityalaya Temple Trust was examined concerning the collection of entry fees from visitors to the Temple Hall. The ruling, detailed in Advance Ruling No. RAJ/AAR/2023-24/22 dated March 26, 2024, concluded that the collection of temple entry fee is exempt from GST.Here’s an overview of the case and the key points of the ruling:

Background:

The Shri Digamber Jain Sidhkut Chaityalaya Temple Trust is a religious trust registered under Section 12AA of the Income Tax Act, 1961. It is dedicated to the worship and puja according to the Terapanth Sect of the Digambar Jain religion. The trust collects an entry fee from pilgrims, visitors, and devotees who come for darshan of the Temple Hall. The collected amount is utilized for the upkeep and maintenance of the Temple Hall and other objectives of the trust.

Issue:

The primary issue under consideration was whether the entry fee collected by the Applicant from visitors for darshan of the Temple Hall is subject to GST.

Ruling:

The AAR Rajasthan made the following observations and rulings:

1. Nature of Service: The AAR observed that the service provided by the Applicant, i.e., darshan/visit of the Temple Hall, is in the course or furtherance of business. Therefore, it falls within the purview of supply under GST, and the amount received constitutes consideration.
2. Exemption Notification: The AAR noted that Sr. No. 1 of Notification No. 12/2017-Central Tax (Rate) exempts intra-state supply of services by entities registered under Section 12AA of the Income Tax Act, 1961. Additionally, it referred to an advance ruling by AAR Karnataka regarding special darshan charges being exempt from GST under Entry No. 13(a) of the Exemption Rate Notification.
3. Advancement of Religion: The AAR opined that the Applicant’s service of providing darshan of the Temple Hall, along with insights into Jainism principles and teachings of the Tirthankar, constitutes advancement of religion. Therefore, it falls under the charitable activities exempted from GST under Entry No. 1 of the Exemption Rate Notification.

Conclusion: Deciphering Temple Entry Fee Exemption

The ruling by AAR Rajasthan provides clarity on the tax treatment of entry fees collected by religious trusts for the darshan of Temple Halls. It underscores the exemption available under GST for charitable activities relating to the advancement of religion. This ruling serves as a precedent for similar cases and contributes to a better understanding of GST provisions concerning religious institutions and charitable activities.

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