How to setup a SQL Cluster between 2 sites in active passive mode without shared storage we need to install SQL at 2 sites, 1 primary and 1 DR. We don't to pay for license for the DR and need to know how will we setup a SQL cluster/replication/alwayson/bag or any other method that will keep the Sql service down at DR and only when primary is unavailble then the SQL service starts.

currently we installed a BAG and the 2 sites have sql service running, though we use only one site at a time, Auditors flagged it as active/active while we thought it was active/passive.

thanks in advance for your suggestions.
It depends on what type of replication. If you can access only 1 Primary DB at a time then its active/passive. If you can access both then its active/active.

Overview : https://docs.microsoft.com/en-us/sql/database-engine/sql-server-business-continuity-dr?view=sql-server-2017

Details : Microsoft SQL Server 2017 Licensing guide