National

No, Jairam Ramesh, Temples Are Not Being Taxed For Religious Activities – Here’s The Truth

March 10, 2025
The Commune

Congress leader Jairam Ramesh has claimed that temples under the Hindu Religious & Charitable Endowments (HR&CE) Department are being subjected to Goods and Services Tax (GST), citing a report from Dinamalar. However, a review of official records and government statements reveals that his assertions are misleading and factually incorrect.

What Does the Law Actually Say?

According to the official response in Parliament dated 3 February 2025, temples and religious institutions enjoy comprehensive exemptions from GST for their core religious and spiritual activities. These exemptions include:

  • Prasadam distribution: No GST is levied on the sale or supply of prasadam in temples.
  • Religious ceremonies: Rituals and services conducted within temples for religious purposes remain outside the GST purview.
  • Premises rental below thresholds: Temples are exempt from GST on renting of halls, community spaces, or shops if the rental income remains within legally defined limits.

Additionally, services provided by temples for religious and spiritual purposes under various sections of the Income Tax Act are fully exempt from GST.

GST Applies Only to Commercial Activities, Not Religious Functions

Contrary to Ramesh’s claim that temples are being forced to pay crores in GST, the tax applies only to commercial activities conducted by temples—such as renting out large properties, shops, or lodges for commercial use. The imposition of GST on commercial property rentals is a standard policy applied across all sectors, including businesses, trusts, and religious institutions.

GST law mandates an 18% tax on rental income from commercial properties, applicable to all property owners, including religious institutions leasing out land or buildings. This is not a special provision targeting temples but a general tax law.

Congress’ Misplaced Outrage And Political Opportunism

Jairam Ramesh’s attempt to paint this as an attack on Hindu temples is ironic, given that the GST Council—responsible for tax policy decisions—includes representatives from both the Centre and State Governments, including Congress-ruled states and its INDI Alliance partners. If Ramesh had genuine concerns, he should have raised them with his own allies.

Furthermore, Congress’ sudden concern for temples contrasts sharply with the party’s track record. In Tamil Nadu, where the HR&CE Department is controlled by the ruling DMK (a Congress ally), temple funds have reportedly been diverted for non-religious purposes, including:

  • Purchasing office supplies for government departments using temple money.
  • Constructing commercial shopping complexes instead of temple maintenance.
  • Reports of devotees and priests being harassed by ruling party functionaries.

If Congress is truly worried about the state of Hindu temples, it should first address these real issues instead of misleading the public with false claims about GST.

Jairam Ramesh’s claims about GST being unfairly imposed on temples are misleading and politically motivated. The law clearly exempts religious services and rituals from GST, with taxation applying only to commercial rentals—something that applies across the board, not just to temples.

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