Nirmala Sitharaman, the Union Finance Minister has said in the Rajya Sabha that there will be no GST exemption for the Tirumala Tirupati Devasthanams. The Union Fin Min said that as per the rules, facilities in TTD have been taken into consideration and in that order, there will be no special exemption for any organization in the country. The issues were also discussed at the GST Council meeting. The Union Finance Minister Nirmala Sitharaman was responding to a question put forward by YSRCP RS MP V Vijayasai Reddy.
The Centre has already reacted negatively to the Tirumala Tirupati Temple in the wake of the unfavourable situation in the state, regarding the funding for Polavaram, Visakhapatnam Steel Plant privatisation, GST arrears and ports. The statement by the Union Finance Minister assumed significance in the wake of parties and AP governments demanding tax exemption for the Tirumala Tirupati Temple.
Centre’s response to Vijayasai Reddy’s questions
The Centre responded saying that there was some leeway prior to GST implementation and that a huge amount of money came from the Tirumala Tirupati Temple in the form of tax. As the Centre did not return the funds in the form of state shares, a request was made to exempt Tirumala Tirupati Temple from GST. The YSRCP RS MP also remarked that there was a GST burden on Prasad. More than Rs 120 crore a year goes to the Centre in the form of GST from the Tirumala Tirupati temple. However, only Rs 9 crore is being redistributed. As a result, the YSRCP government wants the Tirumala Temple to be exempted from GST on a temporary basis.
If the amount exceeds Rs 1000…
In response to Vijayasai Reddy’s questions, the Union Fin Min Nirmala Sitharaman made some key remarks. She said that there were no special exemptions for TTD and that the GST would apply to the Tirumala Tirupati Temple as it applies to all other organisations. She said the tax would be levied on accommodation centres that charge more than Rs 1,000. The Fin Min made it clear that no exemptions can be granted to the TTD in this regard. Apart from the points achieved by AP, she added that funds were being released in accordance with the regulations and the recommendations of the financial institutions. That is, we are giving more than the amount due to AP, the Fin Min said, adding the issue was also raised in the Lok Sabha and remarked that Vijayasai Reddy had made an interesting proposal on the issue.
During her speech in Parliament, Nirmala Sitharaman said that no state can stop funding and that the funds will go to those states as per the GST formula. Nirmala Sitharaman’s remarks came on the heels of comments made by some members that the Centre was acting in a discriminatory matter regarding the funds released to Southern states.
On the whole, the Centre’s stance on tax exemption for the Tirumala Tirupati Temple has been clarified. What kind of comments will the parties make in the upcoming Tirupati Lok Sabha by-elections has turned into a topic of discussion.
