No GST Applied on Free Food, Prasadam at Religious Institutions, Finance Ministry Clarifies

New Delhi, July 11: Clearing air around the reports of GST being applied to free food items and Prasadam, the finance ministry today said that Prasadam that has been supplied by temples, mosques, churches,  gurudwaras, dargahs etc have attracted no CGST, SGST or IGST. The ministry also said that no Goods and Services Tax (GST) is not applicable on free food which is supplied in Annakshetra run by the religious institutions.

“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,” read an official note from the Ministry of Finance.