Applicability of GST

[Bharat Cholleti]

Dear sir,

Temple given contract for Hair offering(tonsure) which is generally performed at 'kalyana Katta' and get some amount from the contractor is there any GST applicability in the hands of the temple if yes Rate of tax and HSN/SAC, has also given 'coconut breaking' in temple offered by Pilgrims and receive some amount from the contactor is there applicability of GST/SAC and rate of tax in the hands of the temple thanks in Advance.

[Bharat Cholleti]

sir,

in " coconut breaking" contractor will get one portion of Coconut which he will sell out side the market.

[KASTURI SETHI]

HSN 999721 for hair tonsure GST 18 %

[KASTURI SETHI]

The following extract of Board's circular may be helpful to you:-

FAQ C.B.I. & C. Circular F. No. 332/2/2017-TRU, dated December, 2017

Q. No.13 What is HS code and GST rate of copra and dried coconut?

1. Coconuts, fresh or dried, whether or not shelled or peeled fall under heading 0801 and attract Nil GST. As per the HSN Explanatory Notes, the heading excludes copra, the dried flesh of coconut used for the expression of coconut oil (1203).

2. Copra falls under heading 1203 and attracts 5% GST.

[DR.MARIAPPAN GOVINDARAJAN]

The GST is leviable if the threshold limit exceeds.

[Bharat Cholleti]

Dear sirs,

Temple is registered under 12AA of Income tax act, charitable and relgious funcitons, still temple is liable to pay on the tender amount received from the contractor?

[KASTURI SETHI]

If activity is commercial, no benefit or exemption is available. Now-a-days temples are engaged in commercial activities in addition to religious and charitable activities. Even the departments of electricity and water issue bills and charge commercial rates from the temples.

The Contractor is engaged in two activities : Sale of coconut and supply of service i.e. coconut breaking. It falls under HSN 9985 (998519 or 998599) attracting rate @ 18%.

This is in continuation of my earlier replies dated 16.1.20 above.

[Bharat Cholleti]

kasthuri sir namasthe, is temple is liability to pay GST? on the amounts got from the Contractor for the two activities namely

1) hair tonsure and

2) Coconut breaking, which amount in turn temple will use for charitable purposes.

[KASTURI SETHI]

Read the definition of charitable activities and the whole circular of C.B.E. & C. Flyer No. 39, dated 1-1-2018. Relevant extract is as under :-

GST on services provided to charitable trusts : Services provided to charitable trusts are not out of ambit of GST. All services other than those specifically exempted provided to charitable trusts will be subject to GST.

GST on supply of goods by Charitable Trusts : There is no exemption for supply of goods by charitable trusts. Thus any goods supplied by such charitable trusts for consideration shall be liable to GST. For instance, sale of goods shall be chargeable to GST.

[KASTURI SETHI]

Service Providers are Contractor (Coconut breaking) and Contractor (activity of tonsuring) and not temple. No exemption is available to them except threshold exemption.

[Mr Rao]

Dear experts,

In my view, the temple is liable to pay GST on the amounts received from the contractors and contractors are liable to pay GST on the amounts received from pilgrims for hair tonsuring and coconut breaking.

[KASTURI SETHI]

Go through para no.10 of the decision of AAR, Karnataka on this issue :

2020 (5) TMI 220 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKA IN RE: M/S. SRI MALAI MAHADESHWARA SWAMY KSHETHRA DEVELOPMENT.

Decided on 28.4.2020

AI Summary

GST applicability on contractor supplied tonsure and coconut services depends on supply character and threshold applicability. Contractors performing hair tonsure and coconut breaking supply taxable services (and where applicable goods) and must assess GST liability subject to threshold; temples do not automatically obtain exemption for amounts received from contractors if the underlying activity is commercial, and coconut classification (fresh coconut versus copra) determines the applicable HSN and GST rate.