"Dream, Dream, Dream! Conduct these dreams into thoughts and then transform them into action."
- Dr. A. P. J. Abdul Kalam

GST applicable on free food at ‘anna kshetras’???

12-07-2017 05:00 AM | Pooja Nevewani | My Indian Dream

GST applicable on free food at ‘anna kshetras’??? | My Indian Dream

Image Source

Know the ‘prasadam’ offered at religious institutions are exempted from GST or no...

The central government has made it clear that all the food served at religious places are to be exempted from the Goods and Services Tax (GST).

Finance Ministry in their statement said that certain media reports suggested application of GST on free food at ‘anna kshetras’ run by religious institutions which are completely wrong. No GST is applicable on free food supplied by the religious institutions. Also, the ‘prasadam’ offered at churches, temples, mosques, gurudwaras, dargahs are exempted from the Central GST, State GST and Integrated GST for that matter.

But government stated further that some of the raw materials or services required in making the prasadam might incur GST. Some like sugar, vegetable oil, ghee, transportation services for these goods will have GST applicable on them. Also, a particular service is applicable for many different purposes. So it becomes tedious to set different tax rates for various purposes or for a particular purpose. Also, the end-use based exemptions or concessions get difficult to be looked upon and managed as GST is a multi-stage tax. Thus it won’t be advisable to provide end-use based exemptions on the services and raw materials used for making the freely distributed prasadam or food at the religious institutions.

About the Author


A bibliophile who likes to gain and share knowledge.
Support the Initiative

Buy the My Indian Dream merchandise to support our various initiatives. The premium merchandise enables you to make a statement in style as well as enable our efforts.