No GST on religious offerings, government says
New Delhi: The finance ministry clarified on Tuesday that goods and service tax (GST) is not applicable on free food supplied by religious institutions.
The religious offering (prasadam) supplied by religious places like temples, churches, gurudwaras and dargahs attracts no central, state or the integrated GST which is applicable on inter-state trade, said a finance ministry statement.
However, the ingredients used in making such offerings including sugar, vegetable edible oils, ghee, butter as well as the service for transportation of these goods will attract GST.
“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,” said the ministry. Since GST applies to raw materials and services in successive stages of production, it is difficult to administer end use based tax exemptions or concessions, the ministry statement added.