Will Gangajal And Puja Samagri Be Taxed Under GST? CBIC Clarifies

The Finance Ministry's revenue department issued a clarifying tweet on Thursday, asserting that "gangajal" (water from the holy Ganga river) and "puja samagri" (ritual items) is exempted from the Goods and Services Tax (GST). Amidst claims that an 18 per cent GST was imposed on Gangajal, the Central Board of Indirect Taxes and Customs (CBIC) felt the need to address this due to certain news reports.

The CBIC said, "Gangajal used in household pujas across the country and puja samagri are exempt under GST. The applicability of GST on puja samagri was extensively discussed during the 14th and 15th meetings of the GST Council in 2017, and it was decided to keep them on the exempt list. Therefore, these items have been exempt since the introduction of GST."

The GST Council had already exempted various items, including kajal, kumkum, bindis, sindoor, alta, plastic and glass bangles, and puja samagri of all kinds, from GST taxation.

The CBIC also noted that discussions regarding GST on "puja samagri" took place during the 14th and 15th meetings of the GST Council on May 18-19, 2017, and June 3, 2017, respectively, leading to the decision to maintain their exempt status.

Earlier in the day, Congress President Mallikarjun Kharge criticized the government, stating that an 18% GST had been imposed on Gangajal, labeling it as "the height of loot and hypocrisy." Kharge addressed Prime Minister Narendra Modi, expressing concern about the financial burden on those who order Ganga water for their households.

Meanwhile, during a meeting on Saturday, the GST Council decided to reduce the tax rate for molasses. Molasses will now be taxed at a 5 per cent GST rate, down from its previous 28% categorization, and alcohol for human consumption was further exempted from the levy.