GST Applicability to Gangajal?

Gaurav Soni October 12, 2023 06:25 3138 0

Context: Recently, Central Board of Indirect Taxes and Customs (CBIC) has provided a clarification affirming that Gangajal and various other puja items are not subject to Goods and Services Tax (GST).

Context: Recently, Central Board of Indirect Taxes and Customs (CBIC) has provided a clarification affirming that Gangajal and various other puja items are not subject to Goods and Services Tax (GST).

No GST on ‘Gangajal’ and Religious Worship Items

MisInformation: In response to allegations of an 18% GST levy on Gangajal, the Central Board of Indirect Taxes and Customs has provided a clarification affirming that Gangajal and various other puja items are not subject to GST.
- The Central Board of Indirect Taxes and Customs has officially clarified that no GST is applied to ‘Gangajal’ and other religious worship items. Following are the official tweet from CBIC.

About Central Board of Indirect Taxes and Customs (CBIC):

Establishment: Established under the Central Board of Revenue Act, 1963. Role: Administering customs duties, excise duties, and Goods and Services Tax (GST). Function: Formulating policies, facilitating trade, ensuring compliance, revenue collection. Chairperson: Senior-most IRS officer in Customs & Indirect Taxes; ex officio Special Secretary to GOI.

GST Applicability on Puja Samagri

The use of Gangajal in household pujas across the nation, as well as various puja materials, has been exempt from GST.
All these items have remained exempt from GST since the introduction of the tax.
Various other puja items such as kajal, kumkum, bindis, sindoor, alta, plastic, etc., are also exempt from GST.

What is Gangajal?

“Gangajal” refers to water from the Ganges River, which is considered sacred in Hinduism and is used for various religious and purification purposes.
Source: It is sourced from the Ganges River, one of the most sacred rivers in India, which is considered the abode of the goddess Ganga.
Sacred Significance: Gangajal is highly revered in Hinduism and is believed to have purifying and spiritually cleansing properties.
Religious Rituals: Gangajal is used in various religious rituals and ceremonies, including puja (worship), yagnas (fire rituals), and aarti (devotional offerings).

Purification: It is commonly used for purifying oneself before prayers or religious activities.
- Many Hindus sprinkle a few drops on their heads and bodies as a form of purification.
Medicinal Uses: Some people believe in the medicinal properties of Gangajal and use it in traditional Ayurvedic remedies for various ailments.
Holy Dip: Bathing in the Ganges is a common practice for pilgrims, as they believe it cleanses them of sins and brings spiritual benefits.
Availability: Gangajal is often collected from specific locations along the Ganges, such as Haridwar and Varanasi, and is made available in bottles or containers for purchase or distribution.
Cultural Symbolism: Gangajal is not just a religious symbol but also a cultural symbol of India, representing the spiritual and historical significance of the Ganges River.

What is Goods and Services Tax (GST) ?

GST is applicable on the ‘supply’ of goods or services, departing from the older concept based on the manufacture or sale of goods or the provision of services.
Destination-Based Taxation: GST follows the principle of destination-based consumption taxation instead of the previous origin-based taxation.
Dual GST: It’s a dual system with the Centre and the States simultaneously imposing taxes on a common base.
- The Centre’s GST is known as Central GST (CGST), while the State’s GST is called State GST (SGST).
Treatment of Imports: Import of goods or services is considered as inter-state supplies and is subject to Integrated Goods & Services Tax (IGST) in addition to applicable customs duties.
Mutually Decided GST Rates: The rates for CGST, SGST, and IGST are determined through mutual agreement between the Centre and the States, with the rates being notified based on the recommendation of the GST Council.
Multiple Rates: Initially, GST was levied at four rates, which include 5%, 12%, 16%, and 28%. The specific items falling under these rates are determined by the GST Council.

GST Council

GST Council: The GST Council is established under Article 279A and is formed by the President to administer and govern GST.
- It is headed by the Union Finance Minister of India and includes members nominated by state governments.
Voting Power: The council is structured so that the Centre holds 1/3rd of the voting power, while the states have 2/3rd.
Decision-Making: Decisions within the GST Council are made by a 3/4th majority vote.

Attempt the Previous Year Prelims Question
Q1. Consider the following items: (2018)

Cereal grains hulled
Chicken eggs cooked
Fish processed and canned
Newspapers containing advertising material

Which of the above items is/are exempted under GST (Good and Services Tax)?

(a) 1 only
(b) 2 and 3 only
(c) 1, 2 and 4 only
(d) 1, 2, 3 and 4

Ans: C

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UPSC Mains Previous Year Papers	UPSC Test Series 2024

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Gangajal FAQs

Ganga water not only purifies the body & soul of millions but also gives fertile land to the country in Uttrakhand, Uttar Pradesh and Bihar. Ganga has been used as a means of Water Transport for trade and commerce. The holy water of Ganga is very useful for all human beings.

The Goods and Services Tax is a successor to VAT used in India on the supply of goods and services. GST is a digitised form of VAT where you can also track the goods & services. Both VAT and GST have the same taxation slabs

The Central Board of Indirect Taxes & Customs (CBIC) on Thursday clarified that there is no GST on 'Gangajal', used in pooja (rituals) by households across the country.

Hindus use Gangajal from birth rites to death. On the normal death of a person, Gangajal is poured into his mouth. As per religious beliefs, this destroys all sins and evil thoughts and purifies the body and mind.

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GST Applicability to Gangajal?

No GST on ‘Gangajal’ and Religious Worship Items

About Central Board of Indirect Taxes and Customs (CBIC):

GST Applicability on Puja Samagri

What is Gangajal?

What is Goods and Services Tax (GST) ?

GST Council

Gangajal FAQs

What is Gangajal?

What is GST?

Is GST applicable on Gangajal?

What is the significance of Gangajal?

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