Clarification was issued by finance ministry
Dismissing media reports circulating about taxes levied on free food supplied in anna kshetras run by religious institutions under the Goods and Services Tax (GST), the Finance Ministry clarified that such food will not attract any charges.
In a notification issues on Tuesday, the Ministry said 'prasadam' supplied by religious places like temples, mosques, churches and gurudwaras will not be subject to any Central, State or Integrated GST, as the case may be.
However, some of the ingredients and input services required for making the same would be subject to taxation under the new regime. These include sugar, vegetable edible oils, ghee, butter, service for transportation of these goods and so on.
→ Income Tax Efiling ← → IT Return ← → Income Tax Department ←
Most of these inputs or input services have multiple uses. Therefore, under the GST, it is difficult to prescribe a separate tax rate for such items, when supplied for a particular purpose.
Further, the GST being a multi-stage tax, end use-based exemptions or concessions are difficult to administer. Therefore, the GST does not envisage such exemptions. It would, therefore, not be desirable to provide similar exemption for inputs or input services for making prasadam or food for free distribution by religious institutions.
Earlier, on July 2, Union Food and Processing Minister Harsimrat Kaur Badal had urged Finance Minister Arun Jaitley to exempt all purchases made by the Shiromani Gurdwara Parbandhak Committee (SGPC) for 'langar sewa' or service at the community kitchen, under the GST........ Full article Source
In a notification issues on Tuesday, the Ministry said 'prasadam' supplied by religious places like temples, mosques, churches and gurudwaras will not be subject to any Central, State or Integrated GST, as the case may be.
However, some of the ingredients and input services required for making the same would be subject to taxation under the new regime. These include sugar, vegetable edible oils, ghee, butter, service for transportation of these goods and so on.
→ Income Tax Efiling ← → IT Return ← → Income Tax Department ←
Most of these inputs or input services have multiple uses. Therefore, under the GST, it is difficult to prescribe a separate tax rate for such items, when supplied for a particular purpose.
Further, the GST being a multi-stage tax, end use-based exemptions or concessions are difficult to administer. Therefore, the GST does not envisage such exemptions. It would, therefore, not be desirable to provide similar exemption for inputs or input services for making prasadam or food for free distribution by religious institutions.
Earlier, on July 2, Union Food and Processing Minister Harsimrat Kaur Badal had urged Finance Minister Arun Jaitley to exempt all purchases made by the Shiromani Gurdwara Parbandhak Committee (SGPC) for 'langar sewa' or service at the community kitchen, under the GST........ Full article Source
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