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Big gurudwaras across the country have got a GST gift from the Modi Government. The Government has decided to set up a fund to refund Central Goods and Services Tax (CGST) and Integrated Goods and Services Tax (IGST) on food items purchased to provide free food by religious places.
GST comprises of CGST and SGST (State Goods and Services Tax). GST collected on any goods or service is distributed equally between Centre and the States. In case of inter-State trade, IGST is levied which is nothing but equal to CGST and SGST. Once IGST is included, CGST and SGST will not be levied. Barring exempted categories, as decided by the GST Council, all remaining goods and services attract GST at specific rates, ranging from 0.25 to 28 per cent, with some goods and services also attract cess which could go up to 25 per cent. Now, if Centre or State wants to give specific benefit, it is possible through refund mechanism.
Using the refund mechanism, the Government has introduced a new scheme called, ‘Seva Bhav Yojana’ under the Culture Ministry. Initially designed for current (2018-19) and next fiscal (2019-20), the scheme will have a financial outlay of ₹325 crore. Under the scheme, “CGST and Central Government’s share of IGST paid on the purchase of specific items by charitable religious institutions for distributing free food to public shall be re-imbursed as financial assistance by the Government of India,” an order issued by Culture Ministry said.
Hailing this move Union Food Processing Minister and Senior Akali Dal leader Harsimrat Kaur Badal said the scheme aims to help all religious institutions and especially gurudwaras which run free community food service on daily basis. “Some gurudwara sahibs feed even 50,000 people every day,” she said while adding that food items purchased by the institutions will get tax benefit. It means individuals donating raw food item such as rice, wheat flour or ghee will not any tax refund.
Delhi Sikh Gurdwara Management Committee or DSGMC, which manages gurudwaras such as Gurudawara Bangla Sahib and Gurudwara Raqab Ganj in Delhi, paid approximately ₹1.5 crore as GST while for Shrimoni Gurudwara Prabandhak Committee (managing famous Swarn Mandir at Amritsar) the amount was ₹3 crore. Now, these committees will get refund.
Sardar Sukhbir Singh Badal, Former Deputy Chief Minister of Punjab and Senior Akali leader, requested States such as Delhi to waive their share of GST on food items purchased by Gurudwaras.
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