The government announced that free food supplied in Anna kshetras (food areas) run by religious institutions have been kept out of the GST ambit.
Prasadam distributed by religious places like temples, mosques, churches, gurdwaras and dargahs, would not attract any Goods and Services Tax (GST).
However, some of the items and services required for making prasadam would be subject to GST, including sugar, vegetable edible oils, ghee, butter, service for transportation of these goods and so on.
Under the GST, it is tough to prescribe a separate rate of tax for sugar, etc, when it is supplied for a particular purpose. GST, being a multi-stage tax, end use-based exemptions or concessions are difficult to administer.
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