AP Endowment Dept to conduct sessions on GST

Tirupati, July 4: As we know that, The unique taxation Regime GST(Good and Service Tax) was exempted for the Prasad of temples for pilgrims hair.

The Andhra Pradesh Endowment Department has going to conduct the special sessions on GST by the Commercial taxes department.

A representative of the commercial taxes department will guide the endowment department on GST to clear any doubts on the new tax regime. Besides, temples will have to upgrade their software to GST.

There are over 20,000 temples in AP and according to experts, those generating over Rs 20 lakh in income will come under GST slab.

In AP, 40 temples generate revenue of Rs 20 lakh to Rs 1 crore, 63 between Rs 1 crore and Rs 25 crore and while seven have income over Rs 25 crore.

GST is applicable on all Seva tickets, hundi, land leases, hair that pilgrims offer at the temple and rentals. Most of the temples deal with all the above. Financial advisers have not yet made the new tax regime clear to the temple administrations.

Endowments commissioner Anuradha said "We are conducting a session for GST in which commercial taxes representative will guide the department."

Incidentally, Prasadam sales are exempt from GST, but the ingredients cost vary as the tax is applicable on some products.

The prasadam given by the Tirumala Tirupati Devastanam has high demand – the TTD spends Rs 230 crore on making for laddus which are half of its annual purchase budget.

Nearly 13,000 kg ghee is purchased every day which presently costs around Rs 468 per kg, the 2,000 kg cashew costs Rs 801 per kg.