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No GST on 'prasadam' but inputs will be taxed: Government

IANS  |  New Delhi 

The free food supplied by religious institutions does not attract any Goods and Services but the inputs required to make it, including sugar, vegetable and ghee are subject to GST, the said on Tuesday.

"There are media reports suggesting that applies on free food supplied in 'anna kshetras' run by religious institutions. This is completely untrue. No is applicable on such food supplied free," the Finance Ministry said here in a statement.

"Further, prasadam supplied by religious places like temples, mosques, churches, gurudwaras and dargahs attracts nil Central and State GST or Integrated GST, as the case may be," it said.

However, some of the inputs and input services required for making 'prasadam' would be subject to GST, it noted, saying these include sugar, vegetable edible oils, ghee, butter and service for transportation of these goods.

"Most of these inputs or input services have multiple uses. Under GST regime, it is difficult to prescribe a separate rate of for sugar when supplied for a particular purpose," it said.

"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," it added.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, July 11 2017. 17:14 IST