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Free prasad, langar: No GST on food supplied by religious bodies, says govt

However, some of the inputs and input services required for making prasadam would be subject to GST

Press Trust of India  |  New Delhi 

Vehicles move past a huge GST poster on the wall of a building, in Guwahati on Friday. Photo: PTI

The government today said supplied in anna kshetras (food areas) run by have been kept out of the ambit.

Besides, 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 would be levied on supplied in anna kshetras run by religious institutions, a finance ministry statement said "this is completely untrue. No is applicable on such food supplied free".

However, some of the inputs and input services required for making 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 or food for free distribution by religious institutions," the statement added.

GST has been rolled out in the country from July 1.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, July 12 2017. 01:16 IST