This circular provides clarification on the applicability of GST on residential programmes or camps conducted by religious and charitable trusts for the advancement of religion, spirituality or yoga, where the fee charged includes the cost of boarding and lodging.

It clarifies that services provided by entities registered under section 12AA of the Income Tax Act by way of advancement of religion, spirituality or yoga are exempt from GST. Accordingly, fees or consideration charged from participants for attending religious, spiritual or yoga programmes or camps remain exempt, even when such programmes are residential in nature and the charges include accommodation and food, provided that the primary and predominant objective of the programme is the advancement of religion, spirituality or yoga.

However, the circular clearly distinguishes such exempt activities from taxable ones. Where a religious or charitable trust is merely or primarily engaged in providing accommodation or serving food and beverages for consideration, including in the form of donations, such activities are taxable. Similarly, programmes or camps that are not predominantly religious, spiritual or yoga-based, such as fitness, aerobics, dance, music or similar classes, are not covered by the exemption and are liable to GST.

The clarification reiterates the earlier guidance issued in GST Flyers and aims to ensure consistent tax treatment of activities undertaken by religious and charitable trusts.