The Union Ministry of Culture, under the Government of India, has unveiled a new scheme called ‘Seva Bhoj Yojna’. This initiative aims to provide a financial respite for charitable religious institutions by reimbursing the Central share of Central Goods and Services Tax (CGST) and Integrated Goods and Service Tax (IGST) incurred on food/prasad/langar/bhandara that these entities offer free of charge to the public. The institutions that stand to benefit from this plan range from Temples, Gurudwaras, Mosques, Churches, Dharmik Ashrams, Dargahs, Matths, Monasteries, etc.
Understanding Seva Bhoj Yojna
Seva Bhoj Yojna is designed to lighten the monetary load of those charitable religious institutions which provide food or prasad (a devotional offering made to a god), langar (community kitchen), or bhandara (a community feeding initiative) free of cost to the masses without any discrimination. In essence, the program ensures that these entities can continue their charitable endeavors without worrying about the financial implications of tax payments.
Eligibility Criteria for Seva Bhoj Yojna
To qualify for this initiative, a charitable religious institution must meet certain conditions. Firstly, they should have been operational for at least three years prior to applying for this financial aid. Secondly, they need to serve free food to a minimum of 5000 individuals in a month. Furthermore, these institutions are required to be registered under specific sections of Indian legal code such as Section 10 of the Income Tax Act, Section 12AA of Income Tax Act, the Societies Registration Act or as a Public Trust under any law currently in force of statutory religious bodies formed under any Act.
The Goods and Services Tax Regime in India
As part of the new tax regime in India, there are three types of taxes that apply to goods and services. These include CGST, IGST, and SGST.
CGST is a tax levied on intra-state supply of goods or services by the central government, with the proceedings divided equally between the state and the centre.
IGST, which replaces the previously levied central sales tax, is charged on all inter-state supply of goods or services within India along with export and import of goods or services. In scenarios of inter-state supply, IGST is the only tax levied by the central Government with the proceeds being shared between the central and state governments.
SGST, on the other hand, is imposed on intra state supply of goods or services by the respective state governments.
Quick Facts about Seva Bhoj Yojna and GST
| Fact | Description |
|---|---|
| Seva Bhoj Yojna | A scheme introduced by the Union Ministry of Culture, Government of India to reimburse CGST and IGST to charitable religious institutions. |
| Eligibility | Charitable religious institutions that have been existing for at least three years and serve free food to at least 5000 people a month. |
| Goods and Services Tax (GST) | A comprehensive multi-stage, destination-based tax in India levied on every value addition. |
The Impact of Seva Bhoj Yojna on Charitable Institutions
The implementation of Seva Bhoj Yojna helps soothe the financial strain faced by numerous charitable religious institutions. By reimbursing CGST and IGST, these organizations are better equipped to continue their noble practice of offering free meals to large sections of the public. The scheme, subsequently, plays a crucial role in promoting inclusivity and community participation.
