The Central Board of Indirect Taxes and Customs’ ( CBIC ) Directorate General of Goods and Services Tax ( GST ) Intelligence issued a notice to the Sree Padmanabhaswamy Temple Trust in Thiruvananthapuram, Kerala, demanding Rs 1.57 crore in GST dues. The department demanded the payment against the trust for the dues for selling and buying goods that come under the ambit of GST. It was stated that the arrears from 2017 to March last year have to be paid. The tax notice covers the collection of GST on revenue streams, likely from services provided by the temple trust, including activities that may involve donations or services deemed as “commercial” for GST purposes.

Boost Your Business with SME IPO Funding Strategies – Enroll Now On the other hand, the temple authorities have sent a reply to the department stating that GST has been levied on things that are exempted from the tax bracket also and that this amount should be waived off. According to the notice, the tax arrears are on the income of buildings, clock room service, clothes, publications, figures inscribed with pictures of Sree Padmanabha and rent for elephant procession.

The Sree Padmanabhaswamy Temple Trust may argue that the funds are used for religious and charitable activities and should be exempt from GST. Legal proceedings or appeals could follow, where the temple trust might contest the demand if it considers its services non-taxable or primarily religious. Boost Your Business with SME IPO Funding Strategies – Enroll Now The temple authorities argued that the temple is a religious place and the services it provides are not commercial transactions, so it is exempt from GST. They also said that the taxable income of the temple is only around Rs 16 lakh, and that tax for that amount has already been paid. However, the GST department dismissed the temple’s explanation and issued the notice. The temple’s executive officer said that they would provide a proper response to the notice.