SGPC To Bear Financial Burden of $1 Million Due to GST

AMRITSAR SAHIB : With the imposition of GST (Goods & Services Tax) in India from July 1, some of the prominent Sikh shrines in Punjab are likely bear more financial burden. Currently, the Punjab government has exempted the sanctum sanctorum Sri Harmandir Sahib and Takht Sahibans from VAT (Value Added Tax) on purchase of any kind of goods and services, however, due to the GST, tax regulations will change for the SGPC. With the enforcement of GST in India, the holiest Sikh shrine Sri Harmandir Sahib and sacred Takht Sahib will also have to pay the normal cost of Goods and services. SGPC is likely to get affected the most when the GST is levied on goods and services. Speaking with Sikh24, SGPC Chief Secretary Harcharan Singh confirmed that the SGPC run Sikh shrines were enjoying exemption from VAT from a long time. He informed that the SGPC would have to bear financial burden of more than Rs. 70 million, which equate roughly to USD $1 million annually.
He further informed that the SGPC was making efforts to get relaxation from GST by contacting the Indian government and concerned departments. He said that the SGPC was offering non-profit services like langar (free food), rest houses, educational institutes, etc. for which the SGPC ought to be excluded from GST.