Seva Bhoj Yojna | 18 Jul 2019

The Union Ministry of Culture, Government of India has introduced ‘Seva Bhoj Yojna’ that seeks to reimburse Central share of Central Goods and Services Tax (CGST) and Integrated Goods and Service Tax (IGST) on food/prasad/langar/bhandara offered by charitable religious institutions.

  • Seva Bhoj Yojna aims to lessens the financial burden of such charitable religious institutions (such as Temples, Gurudwara, Mosque, Church, Dharmik Ashram, Dargah, Matth, Monasteries etc) that provide food/prasad/langar (community kitchen)/bhandara free of cost without any discrimination to public/devotees.

Eligibility

  • The Charitable religious institutions which have been in existence for at least three years before applying for financial assistance/grant.
  • Charitable religious institution who serve free food to at least 5000 people in a month.
  • Institutions need to be covered under Section 10 of the Income Tax Act or are registered as a society under the Societies Registration Act or as a Public Trust under any law for the time being in force of statuary religious bodies constituted under any Act or institutions registered under Section 12AA of Income Tax Act.

Under Goods and Services Tax regime, there are three taxes

  • CGST : Central Goods and Services Tax will be levied (on intra-state supply of goods or services) by the central government and proceeds of the tax will be divided between the state and the centre.
  • IGST: Integrated Goods and Service Tax has replaced the previously levied central sales tax and is levied on all inter-state supply of goods or services within India along with export and import of goods or services.
    • In case of inter-state supply, only IGST will be charged by the central Government and proceeds will be shared between the central and state governments.
  • SGST: State Goods and Services tax will be levied on intra state supply of goods or services by the respective state governments.