No GST on prasadam supplied by religious institutions

Sugar, vegetable edible oils, ghee, butter, service for transportation of these goods would be subject to GST

By: PTI | New Delhi | Published:July 11, 2017 7:20 pm
GST Prasadam, Prasadam GST, GST on Prasadam, GST, Prasadam, Religious Institution Food, Business News, Latest Business News, Indian Express, Indian Express News Sugar, vegetable edible oils, ghee, butter, service for transportation of these goods would be subject to GST (Photo: Devika/ Flickr)

The government on Tuesday said free food supplied in anna kshetras (food areas) run by religious institutions have been kept out of the GST ambit. Besides, prasadam distributed by religious places of worship like temples, mosques, churches, gurdwaras and dargahs, would not attract any Goods and Services Tax (GST).

Clarifying on media reports that suggested that GST would be levied on free food supplied in anna kshetras run by religious institutions, a finance ministry statement said “this is completely untrue. No GST is applicable on such food supplied free”. However, some of the inputs and input services required for making prasadam would be subject to GST. These include sugar, vegetable edible oils, ghee, butter, service for transportation of these goods etc.

The ministry said most of these inputs, or input services, have multiple uses. Under GST regime, it is difficult to prescribe a separate rate of tax for sugar, etc. when supplied for a particular purpose. GST, being a multi-stage tax, end use based exemptions or concessions are difficult to administer. Therefore, GST does not envisage end use based exemptions, the ministry said.

“It would, therefore, not be desirable to provide end use based exemption for inputs or input services for making prasadam or food for free distribution by religious institutions,” the statement added. GST has been rolled out in the country from July 1.

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  1. T
    Thamilanda
    Jul 12, 2017 at 6:42 am
    Thanks for using the beautiful Tamil word Prasadam.
    Reply
  2. A
    Ankit
    Jul 11, 2017 at 10:31 pm
    Thank God! Otherwise these money looteras would have looted tax on God's prasad also.any temples, mosques, gurudwaras feed poor from their prasad centres. At least the poor will get two sufficient meals there of not at their homes.
    Reply
  3. C
    chander
    Jul 11, 2017 at 10:09 pm
    Hope there is GST on organ donations. Most of the organ recipients are rich and the donors are illiterate and poor.
    Reply