The Kumbh Mela is one of the largest religious gatherings in the world, held every 12 years at one of four locations in India: Allahabad (Prayagraj), Haridwar, Ujjain, and Nashik. Millions of devotees gather to take part in the sacred bath (snan) at the confluence of holy rivers. The accommodation for devotees during the Kumbh Mela is a massive logistical challenge due to the sheer number of people attending.
The accommodation arrangements for devotees during the Kumbh Mela are a complex logistical feat that requires coordination between religious organizations, local authorities, and private providers. While many accommodations are free or subsidized by religious bodies, others are commercial in nature, leading to potential issues of taxation under the GST framework.
This is an area where more clarity might be needed from authorities to ensure that both religious organizations and private entities providing services during events like the Kumbh Mela are treated fairly under the GST system. In this article we will analyse the ambit of GST exemption in relation to accommodation services provided in religious places.
A registered charitable trust under Section 12AB of the Income Act 1961 is entitled for GST exemption on renting of rooms provided to general public in precincts of religious place under Serial number 13 of exemption notification number 12/2017 Central tax (Rate) dated 28.06.2017.It may be relevant to extract the relevant portion of Notification No. 12/2017 dated 28.06.2017, which reads as under:
| S.no | Chapter, Section, Heading, Group or Service Code (Tariff) | Description of Services | Rate ( per cent) | Condition |
| … | … | … | … | … |
| 13 | Heading 9963 or Heading 9972 or Heading 9995 or any Heading of Section 9 | Services by a person by way-
(a) Conduct of any religious ceremony (b) Renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under Section 12AA or 12AB of the Income Tax Act 1961 (hereinafter referred to as the Income Tax Act) or a trust or an institution registered under sub-clause (v) of clause (23C) of Section 10 of the Income Tax Act or a body or an authority covered under clause (23BBA) of section 10 of the said Income Tax Act: Providing that nothing contained in entry (b) of this exemption shall apply to,- (i) Renting of rooms where charges are one thousand rupees or more per day (ii) Renting of premises, community halls, Kalyan mandapam or open area, and like where charges are ten thousand rupees or more per day (iii) Renting of shops or other spaces for business or commerce where charges are ten thousand rupees or more per month.
|
Nil | Nil |
Entitlement of GST exemption under Serial Number 13 is subject to satisfaction of following conditions:
- Services by way of renting of rooms must be provided to general public located at precincts of a ‘religious place’
- Rental services must be inter alia provided by an entity registered under Section 12AB of the Income Tax Act 1961.
- The consideration towards renting of rooms must be below rupees thousand rupees per day.
The phrase “precincts” was not defined under the GST Act. Dictionary meaning of the phrase “precincts” means an area within the walls or perceived boundaries of a particular building or place, an enclosed or clearly defined area of ground around a cathedral, church temple etc.
In this regard it may also be relevant to extract the definition of the expression “religious place” in the GST exemption notification, which reads as under:
2(zy) “religious place” means “a place which is primarily meant for conduct of prayers or worship pertaining to a religion, meditation or spirituality.”
On a plain reading of the definition of “religious place” all that it does is to identify whether the place is primarily a place of worship or prayer pertaining to a religion, meditation or spirituality.
In this article we will analyse the phrase “religious place” by noting the the principles of prayer and worship in Hinduism.
In Hinduism, the conduct of worship, primarily known as “puja,” is a personal act of devotion where Hindus offer prayers and offerings to one or more deities, typically taking place at home shrines or temples, involving the presentation of items like flowers, incense, food, and water, while reciting mantras and chanting the deity’s names, all with the aim of establishing a personal connection with the divine through “bhakti” (devotional love).
For a Hindu, worship is very important and is something many Hindus do every day. Worship is a way of showing love and devotion to God. Hindus believe they have an atman, or an element of God, within them. Therefore, connecting to God through worship is very important. Hindus use all their senses when they worship so that they can fully connect to God.
Key aspects of Hindu worship:
- Puja ritual:
The central practice of Hindu worship, where offerings are made to a deity, usually involving items like flowers, incense, lamps, and food.
- Darshan:
The act of seeing and paying reverence to the deity’s image, considered an important part of the puja.
- Mantras:
Sacred sounds or syllables chanted during worship, believed to have spiritual power.
- Aarti:
A ritualistic waving of a lighted lamp in front of the deity, often accompanied by chants and hymns. Aarti worship is one of the main ceremonies.
- Prasada:
Food offered to the deity during puja, considered blessed and shared among worshippers.
It is also not out of place to mention that daily spiritual practice in Hinduism is known as sadhana which is a pathway to spirituality. It is a common practice for gurus or teachers to regularly give lectures/discourses in Hindu temples.
From the above it is explicitly clearly that in Hindu way conduct of prayer and worship are inextricably linked to each other and the same are regarded as gateway for spirituality.
In Hinduism, place of Prayer or worship is not restricted to worship of deities in ‘Temples’
Vasudhaiva Kutumbakam
As per provisions of GST Act, Religious place is a place primarily for conduct of worship or prayer pertaining to a religion. In Hinduism, place of prayer or worship has a wider interpretation which is not limited to worship of deities but also entire universe i.e. Prithvi (Earth), Jal (Water), Agni (Fire), Vayu (Air), Akasha(Space)- these five elements of nature in Hinduism is known as Pancha Bhutas.
In Spiritual and cultural traditions of Hinduism, worshipping of Pancha Bhutas has been regarded as balance and harmony with oneself and the surrounding world. The same was drawn from the principles of Vasudhaiva Kutumbakam enshrined in Vedic literature.
Vasudhaiva Kutumbakam” is a Sanskrit phrase that means “the world is one family”. It is derived from the ancient Indian scriptures, such as the Maha Upanishad and is further referred to in the Hitopadesha and other literary works of India.
Above mentioned shlokas give us knowledge about oneness. Nobody is separated. We are the part of same power that is eternal. This knowledge gives us the insight to see everyone as one. There is no you and me. We are all consciousness. This thinking gives us the power to see the world beyond discrimination.
Accordingly, in Hinduism the place of prayer or worship is not only confined to worship of deities but also nature which are explained in detail as under:
Trees as places of ‘worship’ or ‘Prayer’ in Hindu Religion.
The Hindu sacred texts have a Sanskrit saying “Vruksho rakshati rakshitaha” (A tree protects those who protect it). The practice of tree worship is also found in Islam, Buddhism, Christianity and various other global religions
The worship of trees in India can be categorised into three main types
- Kalpa vriksha(mythological wish-fulfilling tree),
- chaitya vriksha(sacred village tree symbolising protection) and
- sthala vriksha (temple tree, typically found in the temple’s outer enclosure).
The relationship between religion and nature is age-old in India. Many states accord forests a sacred title, and in several places of worship, individual trees, shrubs or herbs are revered. In Hinduism, these are called sthala vriksha or temple trees.
Hindu literature frequently mentioned sacred temple trees such as chitra vriksha in texts like the Padma Purana, Matsya Purana. The sacred trees regarded as place of worship in Hinduism.
The Sri Maha Bodhi, Bodh Gaya
The Sri Maha Bodhi in Bodh Gaya is one of the most famous trees in the world where Buddha attained enlightenment. This tree is one of the major pilgrimage sites of Buddhism and Hinduism. Pilgrims from across the world pay homage and attain enlighten themselves.
Thimmamma Marrimanu, Anantapur, India
According to local myth, this Banyan tree is named after Thimmamma a women who committed sati- suicide by throwing herself on the funeral pyre of husband’s dead body. A small temple stands beneath the tree. It is believed that childless couple who visit the temple will have children in less than year.
Water as places of ‘worship’ or ‘Prayer’ in Hindu Religion.
Water is of special significance in Hinduism, not only for its life-sustaining properties, but also because of its use in rituals and because of the stress given to cleanliness. Bathing also has religious significance, especially in rivers considered sacred. Mother Ganga (the Ganges) is considered to purify the bather of sins.
According to Hindu theology, there are five sacred lakes; collectively called Panch-Sarovar; Mansarovar, Bindu Sarovar, Narayan Sarovar, Pampa Sarovar and Pushkar Sarovar. They are also mentioned in Shrimad Bhagavata Purana.
The above clearly establishes that in Hinduism the functional form of worship has wider meaning over physical form of worship.
Temple is a religious place
In Hindu law, the term “temple” typically refers to a place where Hindus gather for religious worship, rituals, and offerings to deities. Temples are intended for religious worship and devotion to Hindu deities. It’s a space where rituals, ceremonies, and prayers are conducted according to Hindu customs.
Structural elements of a temple were secondary to its primary function—worship.
A temple generally has specific structural elements, such as an altar (or sanctum sanctorum), a deity idol or image, and places for devotees to gather. These architectural features might not be present in every worship site but are usually indicative of a place’s status as a temple.
The temple is not strictly defined by architectural grandeur or traditional elements but by its function as a place of worship.
The structural features like sanctums and idols are typical, the essential nature of a temple lies in its role as a venue for the worship of deities, and this can be seen in both formal and informal settings. The court tends to focus on the purpose and usage of the space, rather than its exact physical appearance.
Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act 1987
In this regard it is pertinent to note here that the definition of “temple” under Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act 1987:
| As per Section 2(27) of Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act 1987, the phrase “temple” means a place whatever designation known used as a place of public religious worship, and dedicated to, or for the benefit of, or used as of right by the Hindu Community or any section thereof as a place of public religious worship and includes sub-shrines, utsava mandapas, tanks and other necessary appurtenant structures and land;
Explanation: A place of worship where the public or a section thereof have unrestricted access or declared as a private place of worship by court or other authority but notwithstanding any such declaration, public or a section thereof has unrestricted access to such place and includes a temple which is maintained within the residential premises, if offerings or gifts are received by the person managing the temple from public or a section thereof at the time of worship or other religious function shall be deemed to be a temple
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The above definition under Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act 1987 has also provided deemed status to temples based on place of worship and provided wider meaning.
These legal issues highlight a broader discussion about how GST laws intersect with India’s diverse religious landscape. The ongoing litigation is not only about taxes but also about the balance between state regulation and the autonomy of religious institutions, as well as the extent to which religion and commerce should be intertwined.
Religious institutions often argue that their activities are primarily charitable or spiritual, rather than commercial, and should therefore be outside the ambit of GST. On the other hand, tax authorities maintain that any service or business-like activity (such as renting out facilities, providing food, or selling goods) should fall within the purview of GST.
Conclusion
The “new saga” of GST litigation concerning religious places is likely to continue as the legal system grapples with these complex issues. Given the sensitive nature of the subject, it will require careful legal analysis and possibly changes or clarifications in the law to address the concerns raised by religious institutions, tax authorities, and devotees alike.
( the views expressed in this article are strictly personal and cannot be considered as legal opinion in case of any query. The author of this article can be reached at caprudhvigst@gmail.com)
Author Bio
congratulations for dealing the issue and identifying possible areas of litigation under gst. But your opinion on the issues is awaited as to whether it is exempt under notn 12/2017. U can express your view as to it is taxable or exempt . Awaiting your opinion