Tax on langar purchases: Meghwal says GST council to take call

With the Punjab government seeking GST exemption on goods used to cook 'langar', Union minister Arjun Ram Meghwal today said the Goods and Service Tax (GST) council will take a call on this matter.

However, Meghwal, who is minister of state for finance, said there is no GST on langar or free meals distributed by Gurudwaras.

"There is no GST on langar. It is payable on goods used in making it. GST council has already received this demand and it will take a decision on it," Meghwal said while talking to reporters here today.

Notably, Punjab has been demanding GST exemption on items used in cooking langar and prasad at Gurudwaras.
 

Punjab Chief minister Captain Amarinder Singh had written a letter to Union Finance Minister Arun Jaitley, demanding GST exemption on 'langar' and 'prasad' distributed at various religious places.

Amarinder had written that Gurdwaras were exempted from VAT on goods they bought to cook at 'langar' (community kitchen).

Under the GST regime, tax is payable on the purchases made for the community kitchens.

"The levy of GST on goods purchased by these institutions was not fair as they did not have any source of income and were being run and managed through donations," Amarinder had said.

The Shiromani Gurdwara Parbandhak Committee (SGPC), apex religious body of the Sikhs, had projected an extra financial burden of Rs 10 crore per year due to the imposition of the GST on food items used for the community kitchen.

Main opposition party in Punjab Aam Aadmi Party (AAP) had even criticised Union minister and Akali leader Harsimrat Kaur Badal for allegedly "failing" to get GST exemption on langar.

Meanwhile, to a query on UT Chandigarh mayor Asha Jaiswal's demand of Rs 200 crore for city's development, Meghwal said his ministry will hold a meeting with officials of UT Chandigarh in this regard.

"We will look at their proposal and I will also talk to Union Home Minister Rajnath Singh in this regard. Our revenue realisation has been good and Chandigarh will also get its share," he further said.