Page 195 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : SRI MALAI MAHADESHWARA SWAMY KSHETHRA 441
made or agreed to be made for a consideration by a person in
the course or furtherance of business;
(b) . . . . .
(c) . . . . .”.
7.2 From the above it can be seen that the seva services are not in the
course or furtherance of business and hence the same cannot be covered under
the scope of supply, though there is money received by the applicant for the
same. Further, even the definition of consideration also states that the money
received should be in relation to the supply of goods or services or both and
since the same does not fall under supply, the money received is not a considera-
tion in relation to the supply of goods or services or both. Hence the seva services
provided by the applicant is not a supply and hence is not a part of the turnover
and hence cannot be taxed under the GST Act. Further, as per Entry No. 13 of
Notification No. 12/2017-Central Tax (Rate) services by a person by way of con-
duct of any religious ceremony is also exempt from tax. Hence in lieu of both, the
seva charges and the special darshan charges collected by the applicant is not
liable to tax under the GST Act.
8. Regarding the accommodation services provided by the applicant to
the pilgrims, which is related to the question 5, it is stated that the value of such
service is less than Rs. 1000-00 per day per unit of accommodation. The following
are also observed :
8.1 Since the accommodation services is provided by the applicant to
the pilgrims and the consideration is used to maintain the precincts of the ac-
commodation, and all the ingredients of business is present, the same is in the
course of business and hence the same would be covered under the scope of
supply as per sub-section (1) of Section 7 of the CGST Act, 2017.
8.2 Entry No. 14 of Notification No. 12/2017-Central Tax (Rate), dated
28-6-2017 states that “Services by a hotel, inn, guest house, club or campsite, by
whatever name called, for residential or lodging purposes, having declared tariff
of a unit of accommodation below one thousand rupees per day or equivalent”
and covered by SAC Heading 9963 would be exempt from CGST. Even Entry No.
13 of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 allows exemp-
tion of the services by way of renting of precincts of a religious place meant for
general public, owned and managed by an entity registered as a charitable or
religious trust under Section 12AA of the Income-tax Act, 1961 and the proviso to
that entry states that the exemption is not applicable to renting of rooms where
charges are one thousand rupees or more per day. Hence both these exemption
entries are applicable in case of the applicant if the rentals for rooms are less than
Rs. 1,000-00 per day.
8.3 The applicant is running a lodging house where the accommoda-
tion services for lodging purpose is provided to the pilgrims and visitors and is
charging the consideration based on a declared tariff. The applicant himself
states that the declared tariff of a unit of accommodation is less than one thou-
sand rupees per day and hence the same is squarely covered under the exemp-
tion entry stated above.
9. Regarding the sales of prasadam by the applicant, which is related to
the question No. 2, it is seen that the Entry No. 98 of the Notification No. 2/2017-
Central Tax (Rate), dated 28-6-2017 exempts the goods falling under “Prasadam
supplied by religious places like temples, mosques, churches, gurudwaras, dar-
GST LAW TIMES  21st May 2020  195