GST Applicability on Residential Religious and Yoga Camps: Key Highlights from Circular No. 66/40/2018-GST
<h4><strong>Key Clarifications in the Circular</strong></h4><ol><li><strong>Exemption for Religious, Spiritual & Yoga Programs</strong><ul><li><strong>Services provided by entities registered under Section 12AA</strong> of the <strong>Income Tax Act, 1961</strong>, for <strong>advancing religion, spirituality, or yoga</strong>, are <strong>exempt from GST</strong>.</li><li>This means that if a religious or charitable trust organizes a <strong>yoga camp, meditation session, or spiritual retreat</strong>, the participation fees (including charges for accommodation and food) will <strong>not attract GST</strong>, <strong>provided the primary purpose</strong> is <strong>religion, spirituality, or yoga</strong>.</li></ul></li><li><strong>When GST is Applicable?</strong><ul><li><strong>If the trust primarily provides accommodation or food services</strong>, rather than religious or spiritual activities, then <strong>GST will be levied</strong>.</li><li><strong>Commercial activities</strong>, such as <strong>fitness camps, dance classes, aerobics, and music lessons</strong>, even if conducted by a religious trust, <strong>will be taxable</strong>.</li><li>In short, if a camp is <strong>primarily for religion or yoga</strong>, <strong>it remains tax-free</strong>; but if it is <strong>a fitness or leisure event</strong>, <strong>GST applies</strong>.</li></ul></li><li><strong>Reference to CBIC GST Flyers</strong><ul><li><p>The circular reaffirms the guidelines outlined in <strong>Chapter 39 of the GST Flyers</strong>, which already clarified that <strong>only genuine religious/spiritual camps</strong> will enjoy <strong>GST exemption</strong>.</p><p><a href="https://cms.plasament.com/storage/shubham-pathak/circular-no-66.pdf">circular-no-66</a><br> </p></li></ul></li></ol>