Gst On All Religions Of India

By Author: Sanjeev Goyal
Total Articles: 1
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Firstly, All Entities That Are Providing Religious Activities Must Be Registered Under Section 12AA Of The Income Tax Act.
All Services Related To Religious Activities By The Entities
Now we will outline few activities which conduct by a religious place time to time, few of these are:-

GST Payable On Haj Pilgrimage Services By Private Tour Operators
GST Shall Be Levied On Entry Fees Collected From Visitors/Devotees/Pilgrims Authority For Advance Ruling
Contribution From Members Or Donation From Members
Prasadam Supplied By Religious Places Like Temples, Mosques, Churches, Gurudwaras, Dargahs, Etc.
Puja Samagri
Conduct Of Any Religious Ceremony
Renting Of Surrounding Areas Of A Religious Place
GST On The Running Of Public Libraries For The Lending Of Books By Religious Places Like Temples, Mosques, Churches, Gurudwaras, Dargahs, Etc.
Publication Sales
Participation In Activities:
Training Or Coaching In Recreational Activities:
Interest Income:
√GST Implication On Services Availed Of Private Tour Operators To Visit Religious Place :-
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There is no exemption available to services of religious pilgrimage of any religion provided by any private tour operator and pay tax 5% (if the Operator is not availing ITC) otherwise 18% be chargeability .

However exemption is available by way of entry No. 60 of Notification No. 12/2017- Central Tax Rate , on services of religious pilgrimage facilitated by Government of India whether Central Government or state government .

√GST Applicability On Entry Fees Collected From Visitors/Devotees/Pilgrims?

The issued raised by M/s Shri Digamber Jain Sidhkut Chaityalaya Temple Trust and the Authority for Advance Ruling noted that the applicant would be engaged in service of darshan of Temple Hall and provide insight into principles of Jainism along with teachings of Tirthankara to visitors, which can be considered as advancement of religion.

Therefore, it was held that the amount received by applicant would be considered as consideration for supply of service and it would be eligible to claim benefit of Notification No. 12/2017-CT (Rate) and it would not be required to pay any tax under GST.

√Contribution From Members For An Exempt Activity

Donation/voluntary contribution from members voluntary can never be treated as supply as there is no Bilateral Relationship.

When Donation received from the Members , after this temple sole discretion how to use such money for the purpose of Enhancing religious activity for Public at large.

Donation can not be treated as supply so the question to Chargeability of GST should not arise.

√Prasadam Supplied By Religious Places Like Temples, Mosques, Churches, Gurudwaras, Dargahs, Etc.

Ministry has clarified ‘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 GST rate Notification. These include sugar, vegetable edible oils, ghee, butter, service for transportation of these goods and so on.

√GST On Puja Samagiri

Puja Samagiri mostly used in Hindu Temples which could contain different type of ingredients, here we list out few items:-

Rudraksha, Rudraksha Mala, Tulsi Kanthi Mala, Panchgavya (Mixture Of Cowdung, Desi Ghee, Milk And Curd);
Sacred Thread (Commonly Known As Yagnopavit);
Wooden Khadau;
Panchamrit,
Vibhuti Sold By Religious Institutions,
Unbranded Honey [Proposed GST Nil]
Wick For Diya
Roli
Kalava (Raksha Sutra)
Chandan Tika
There are no need to pay tax on GST and these above items are exempt from tax

√Conduct Of Any Religious Ceremony

In India, the organizations which carry out their activities without a profit motive have always been provided various concessions in the form of exemption from taxes or provision of various facilities at concessional rates.

Charitable organizations carry out variety of activities in the spheres of education, health care, environment protection and enhancement etc. Religious trusts normally own religious places like temples etc. Income of such organizations are generally received through voluntary contribution (donation) or contribution for specific purposes.

Any person who conduct of Religious Ceremony like religious poojas, Occasions like birth, death and marriage ceremony involve religious ceremonies and so these are services are exempt from tax by Heading 9963.

√Renting Of Surrounding Areas Of A Religious Place

As per clause 5(a) of Exemption Notification No.25/2012-ST dated 20.06.12 – “Renting of precincts of a religious place meant for general public” is exempt.

The exemption is not applicable to –

Renting Of Rooms Where Charges Are Rs. 1,000 Or More Per Day;
Renting Of Premises, Community Halls, Kalyanmandapam Or Open Area, And The Like Where Charges Are ₹ 10,000 Or More Per Day;
Renting Of Shops Or Other Spaces For Business Or Commerce Where Charges Are ₹10,000 Or More Per Month.
Any person who conduct of Religious Ceremony like religious poojas, Occasions like birth, death and marriage ceremony involve religious ceremonies and Renting of surrounding area of a religious place meant for general public so these are services are exempt from tax by way of entry No. 13 of Notification No. 12/2017- Central Tax Rate.

√GST On The Running Of Public Libraries For The Lending Of Books By Religious Places Like Temples, Mosques, Churches, Gurudwaras, Dargahs.

No GST will be applicable if Religious trusts are running public libraries and lend books or other publications or knowledge enhancing material from their libraries. This activity is specifically excluded by way of entry No. 50 of Notification No. 12/2017- Central Tax Rate; but services of private libraries are not exempt from GST.

√Publication Sales :-

Sale of publications by trusts will come under the definition of business. Also, this being sale for a consideration will attract the provisions of Supply under section 7. Therefore, it will come under the ambit of GST. However, Books covered under HSN Code 4901 and Newspapers, periodicals and monthly journals covered under HSN Code 4902 attract “Nil” rate of Tax. But yearly printed Calendars covered under HSN Code 4910 attract 12% GST Rate. So, publication sales will be taxable and leads to applicability of all provisions to Non-profit making entities.

√Participation In Activities:

Many institutions involved in exhibition, dramas, and sporting events etc. which have token fees for entry. These services also liable for GST but government has provided exemption to all such organizations which will come within the ambit of GST.

Services by way of right to admission to circus, dance, or theatrical performance including drama or ballet; award function, concert, pageant, musical performance or any sporting event other than a recognized sporting event; recognized sporting event; planetarium, where the consideration for right to admission to the events or places as referred to in items above is not more than ₹250 per person.

This activity is specifically excluded by way of entry No. 81 of Notification No. 12/2017- Central Tax Rate.

Training or Coaching in recreational activities:

Training or coaching provided by institutions in dance, music, art, literature, theatres, drama etc. or any kind of the sports will be exempted from payment of GST. One more exemption to Non Profit making Entities are services by way of training or coaching in recreational activities relating to arts or culture, or sports by Religious entities registered under section 12AA of the Income-tax Act 1961.

√Interest Income:

Receipt of income by way of extending deposits, loans or advances other than interest involved in credit card services has been exempted vide Notification no. 12/2017 dated 28/06/2017. In these case if income received by organization under Savings/Recurring/Fixed Deposits will be exclusively exempted under GST. But these amounts will be considered while calculating the total turnover of the firm. These provisions make all non-profit making entities to register under the act and become liable for payment of taxes in case if they supply small value taxable items. Subsequently all the provision has to comply are required to follow like normal Business taxable person.

FAQs (Frequently Asked Questions)

The Golden Temple Langar Is Considered As Largest Community Kitchen In The World?
Golden Temple has paid Rs 2-crore GST on langar items, while purchasing ration for langar and parshad so the Golden Temple langar is considered as largest community kitchen in the world. No GST has been imposed on the food served in langar and dismissed the charges that government has imposed GST on langar in gurdwaras” Importantly, the GST is not served on food served in langars itself, but is charged on the purchase of raw materials used to prepare the food.

Is There GST On Golden Temple “Serais”?
Outstation devotees, who stay at “serais” (inns) managed by the Shiromani Gurdwara Parbandhak Committee (SGPC) during their visit to the Golden Temple, would now have to pay more, for the Center has imposed the Goods and Service Tax (GST) on the accommodation. Every day, lakhs of devotees from all across the globe visit the Golden Temple, followed by the Durgiana Mandir.

There is a 12 percent GST tax imposed by the Modi government on the accommodation charges in three SGPC-run “serais”—Baba Deep Singh Yatri Niwas, Mata Bhag Kaur Niwas, and Sri Guru Gobind Singh NRI Niwas—all located outside the shrine premises. Tax has not been imposed on the “serais” situated within the shrine complex because ‘Serais’ are not commercial ventures for profit. If you are outside, then you need to pay tax.

There is a 12% GST imposed by the center on inns, which means serais where devotees stay and are managed by the Shriromani Gurdwara Parbandhak Committee located outside the Golden Temple complex.

Prasadams, Sale Of Hair In Tirupati Are Exempt From GST Other Than These There Is Need To Pay Tax?
Other services offered by Hindu Religious institutions were not exempted from GST. For example Guest Houses Provided to pilgrims and other services on nominal rent by temple boards and many Hindu Organisations are to be adversely affected by GST.

Is GST Applicable For Temple Construction?
There is no exemption for construction of temple, this service would cover under heading 9954 attracting 12% GST rate (Composite supply of works contract to the Central Government, State Government, Union Territory, by way of construction, erection, commissioning, installation, completion, fitting out, repair etc.

DISCLAIMER: The information provided in this article is intended for general informational purposes only and is based on the latest guidelines and regulations. While we strive to ensure the accuracy and completeness of the information, it may not reflect the most current legal or regulatory changes. Taxpayers are advised to consult with a qualified tax professional or you may contact to our tax advisor team through call +91-9871990888 or info@ngopilot.in.