Centre’s Seva Bhoj tax sop to benefit TTD by 5-6 cr a year

Tirupati: Here is happy news for the charitable and religious institutions engaged in distribution of free food to public. Union ministry of culture launched a scheme of financial assistance under ‘Seva Bhoj Yojana (SBY)’ with an outlay of Rs 325 crore to benefit the religious charitable institutions taking up distribution of free food to the public.

Under the scheme, CGST (Central Goods and Service Tax) and Central government share of IGST (Integrated Goods and Services Tax) paid on purchase of specific items by charitable religious institutions for distributing free food to public will be reimbursed as financial assistance by the Centre.

After the President accorded sanction to the scheme, Union culture minister approved the scheme laying the path for its implementation for two years i.e. from financial year 2018-19 to the financial year 2019-20, according to an order issued on May 31 by ministry of culture under secretary Praveen Sharma.

It is needless to say that the scheme will provide a relief to Tirumala Tirupati Devasthanams (TTD), the richest Hindu religious institution engaged in Annadanam, providing free food on a massive scale daily to the pilgrims in Tirumala.

With the GST coming into force in July last year, it was TTD which is bearing the brunt with no exemption from the payment of tax under the new system for its purchases for preparation of Prasadams in the temples, Annadanam and also services like providing rented accommodation to pilgrims.

TTD serves free food to about one lakh pilgrims daily visiting Tirumala and on special occasions like Brahmotsavam, Vaikunta Ekadasi, the number would go up.

The TTD, according to rough estimates, may get annually around Rs 5 crore as reimbursement under the new scheme launched by the Union ministry of culture while other devasthanms (temple administrations) at various places engaged in free food distribution (Nithyannadanam) to devotees visiting the shrines under endowment departments in the state will also benefit.

According to TTD Anna Prasadam special officer Venugopal, the marketing department supplies them about Rs 50 crore ingredients per year for providing free food to pilgrims, indicating that TTD will get reimbursement to the tune of Rs 5-6 crore annually under the Centre’s new scheme, giving some relief to it.