There are media reports suggesting that GST applies on free food
supplied in anna kshetras run by religious institutions. This is completely
untrue. No GST is applicable on such
food supplied free.
Further, prasadam supplied by religious places like temples, mosques, churches,
gurudwaras, dargahs, etc. attracts Nil CGST and SGST or IGST, as the case may
be.
However, some of the inputs and input services required for making prasadam
would be subject to GST. These include sugar, vegetable edible oils, ghee,
butter, service for transportation of these goods etc. 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.
Further, GST being a multi-stage tax, end use based exemptions or concessions
are difficult to administer. Therefore, GST does not envisage end use based
exemptions. It would, therefore, not be desirable to provide end use based
exemption for inputs or input services for making prasadam or food for free
distribution by religious institutions.
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DSM/SBS/KA
