A complete reference blog for Indian Government Employees

Tuesday, 11 July 2017

No GST is applicable on free food supplied in anna kshetras run by religious institutions


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.

PIB
Share:

Featured post

Cabinet approves 7th Pay Commission recommendations

LIVE Update : Cabinet approves 7th Pay Commission recommendations: The pay panel had in November last year recommended 14.27 per ce...

Blog Archive

Google+ Followers

About The Author

My Photo
Cgnews Cg
All about Indian Government News. I have started a blog which covers all details about the Indian government News mostly the government orders will published. Take a look and enjoy :) http://indiangovernmentnews.blogspot.in/
View my complete profile