• search

Prashadam in temples to be GST free

By Oneindia Staff Writer
Subscribe to Oneindia News
For Quick Alerts
Subscribe Now
For Quick Alerts
For Daily Alerts

    Free food supplied in anna kshetras or food areas run by religious institutions will not attract GST, the government has said. Prasadam distributed by religious places of worship like temples, mosques, churches, gurdwaras and dargahs, would not attract any Goods and Services Tax (GST).

    Prashadam in temples to be GST free

    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.

    OneIndia News

    For Breaking News from Oneindia
    Get instant news updates throughout the day.

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more