New Delhi: No GST is applicable on free food supplied in anna kshetras run by religious institutions;
prasadam supplied by religious places like temples, mosques, churches, gurudwaras, dargahs, etc. attracts Nil CGST and SGST or IGST, as the case may be.
There are media reports suggesting that GST applies on free food supplied in anna kshetras run by religious institutions. This is completely untrue. No GST is applicable on such food supplied free.
Further, prasadam supplied by religious places like temples, mosques, churches, gurudwaras, dargahs, etc. attracts Nil CGST and SGST or IGST, as the case may be.
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. 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.
Further, 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. 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.
You may also like to read our latest analysed news:
- Schools will remain closed tomorrow due to heavy rains with a link to MLA & MH Education Minister Vinod Tawde’s Tweet.
- Did Pieology fired employee who wrote Fuck The Cops on officer’s receipt
- Video Taslima Nasrin with journalist Shekhar Gupta says Owaisi is my friend
- We pay tax, faced demonetisation, GST but prices have moved NORTH
Note:Please like and share our page, so that we can improve further.
Please give your feedback in the below comments.