GST Burden on Temples; Notices Issued Asking Them to Pay Taxes

Devotees may soon have to pay GST on temple services such as archana, abhishekam, special rituals, room rentals, prasadam sales, and other paid services. Central GST authorities have issued notices to several major temples in Telangana including Yadadri, Vemulawada, Bhadrachalam, Basara, Komuravelli, and Kondagattu creating concern within the Endowments Department.

Under VAT, temples enjoyed tax exemptions, but since GST was introduced in 2017, all temple-generated revenue  has been brought under the tax net. Several temples now reportedly owe crores in GST dues. Officials say that even filing an appeal requires advance payment of 10% of the disputed tax, making the process financially burdensome.

Endowments officials argue that temples already pay GST when purchasing construction materials and essential goods, and imposing GST again on temple income is unfair. Devotees too are expressing dissatisfaction, urging the central government to review the policy.