Telangana State Waqf Board recently gets a GST notice from the office of the Principal Commissioner of GST asking for the 12.5 per cent GST on the waqf occupied properties rental income.
There is an overwhelming number of waqf properties in the state and most of them are been allotted to the leased shops and commercial organizations for revenue generation.
It has been found that notices were sent to the waqf board having commercial leased setup paying rent of more than 30,000 to the board. As per the statement of the waqf board, “We have tried to explain to them that institutions are religious in nature. They are meant for a charitable purpose and will seek an exemption. We are trying to explain this point, but it appears more convincing is required.”
Also, the waqf board stated that there is no full-time CEO, and to sort this issue there will be a lot of time required. A similar GST notice was also received by the Delhi waqf board a few months back.
A senior waqf representative cleared that the revenues received are for religious purposes and hence should not be charged with the GST but it seems that the GST officials are not willing to hear these request.