Finance Minister Nirmala Sitharaman clarified in the Parliament on Tuesday that there will be no Goods and Services Tax (GST) on the ‘prasad’ served at religious places. There is total GST exemption on the food served as such, the FM said.
Sitharaman was speaking in the Lok Sabha during the discussion on Finance Bill 2025. 

Advertisment

There had been several misgivings about the GST on several religious activities. Earlier, the finance ministry clarified that there is no GST on religious places, including on rent paid for rooms in Sarais (accommodations) run by religious or charitable trusts. 
The government said that free food supplied in ‘anna kshetras’ (food areas) run by religious institutions is exempt from GST.

Besides, the ‘prasadam’ distributed by places of worship like temples and gurdwaras would not attract any GST.

Also read | 'Viksit Delhi Budget' 2025-26: Key Highlights from CM Rekha Gupta's maiden budget

The finance ministry said that no GST is applicable on food supplied free, but some inputs and services required for making ‘prasadam’ are subject to GST since they have multiple uses and separate tax rates can’t be prescribed depending on the purpose under the GST regime. 
Since GST is a multi-stage tax, it is not possible to administer exemptions and concessions based on end-use.

Also read | 'No Legacy': Justin Trudeau jeered and booed as he leaves parliament for last time as Canada PM | Watch video

In its reply to a query, the finance ministry had advised Punjab Rajya Sabha MP Vikramjit Singh Sahney to inform the Sikh Gurudwara Prabandhan Committee (SGPC) that it can claim the GST refund on the room rents of Sarais.

Advertisment

Lok Sabha passes Finance Bill 2025

The Lok Sabha on Tuesday passed the Finance Bill 2025, along with 35 government amendments, including one that abolishes a 6 per cent digital tax on online advertisements. With the passage of the Finance Bill 2025, the Lok Sabha completed its part of the budgetary approval process. The Upper House, Rajya Sabha, will now consider the Bill. After the Rajya Sabha approves the Bill, the Budget process for 2025–26 will be complete. 

Also read: India researcher legally living in US faces deportation for allegedly 'spreading Hamas propaganda'

FM Nirmala Sitharaman said the government is aiming to do several things as per the aspirations and expectations of people and the goal of making India a developed country by 20247. 
She also highlighted key changes to enhance ease of doing business and support India’s economic growth like the customs duty rationalisation under which the government is removing seven customs tariff rates to address duty inversion and reduce input costs. Imports will now be subject to either a cess or a surcharge, but not both, preventing double taxation.

Advertisment

Also Read | Man, 89, acquitted of quadruple murders after 56 years, gets $1.5mn damages for agony


To further encourage domestic manufacturing, the government has exempted customs duties on 35 additional capital goods used in electric vehicle (EV) battery production and 28 capital goods related to mobile manufacturing.

Sitharaman also said that the new Income Tax Bill will be taken up for discussion in next monsoon session of Parliament.

BJP MP Nishikant Dubey Dubey lauded the economic performance of the government, saying that country’s GDP has more than doubled in the last 10 years.