Renting of Religious Place meant for General Public Service Tax Exemption

Vide entry no. 5(a) of Notification No.25/2012-ST dt 20-06-2012 provides exemption for
services provided by a person by way of renting of precincts of a religious place meant for
general public.
To claim exemption under Serial No. 5 of Notification No. 25/2012-ST dated 20th June,
2012, following conditions need to be satisfied:
1. There must be renting;
2. Renting should be of precincts of religious place;
3. Such religious place should be meant for general public.
In this regards, litigation took place due to various interpretations as to the Eligible
Assessee to claim exemption on the above. It was then considered an assesse/entity
irrespective of the status, renting of precincts of religious place. ( the ground surrounding
temple, church, mosque etc.)
Recently, the Government issued Notification No. 40/2016-ST on 6th September 2016,
substituting entry 5(a) of Notification No.25/2012 dt 20 th June 2012. Accordingly, now the
exemption is only for an entity registered as a Charitable or Religious trust u/s 12AA or an
institution u/s 10(23C)(v) or a body or an authority u/s 10(23BBA) of Income Tax 1961.
Henceforth, services provided by a person, other than the persons mentioned above, by way
of renting of precincts of a religious place meant for general public shall become a taxable
service.
However, this clause does not specify that renting of place should be for any particular
purpose. Hence, renting of precincts attached to religious place for all purposes is exempt
from payment of service tax.