Religious bodies, such as Gurdwaras and temples which serve free langar and prasad to devotees and the needy, will no longer have to bear the burden of the GST if they cater to at least 5,000 people every month.
The Centre on Friday decided to provide special financial aid under its Rs 350 crore scheme ‘Seva Bhoj Yojna’ to all such bodies which will reimburse the expenses incurred on paying Goods and Services Tax (GST) and Integrated Goods and Services Tax (IGST).
The order has been issued after President Ram Nath Kovind gave his assent to the Special Financial Assistance for the Seva Bhoj Yojna, said an official from the Union Culture Ministry.
The scheme has been announced following demand from the Shiromani Gurdwara Parbandhak Committee (SGPC) and lucknow Gurdwara Parbandhak Committee (lGPC).
The GST is not levied on food served in the langar, but is charged on the purchase of raw materials used to prepare the food. The Golden Temple has paid over Rs 2 crore in GST on langar items to date.
The food bill of the Golden Temple, which feeds between 55,000 and 60,000 devotees daily, is around Rs 75 crore annually.