BMC removes GST from Free Stalls at Mahaparinirvan Diwas

BMC decided to remove the 18% GST imposed on stalls giving free food, water and other services at Mahaparinirvan Diwas after receiving criticism.

BMC to remove GST on Free Stalls

Reetu | Oct 30, 2024 |

BMC removes GST from Free Stalls at Mahaparinirvan Diwas

BMC removes GST from Free Stalls at Mahaparinirvan Diwas

The Brihanmumbai Municipal Corporation (BMC) decided to remove the tax on Tuesday, after receiving criticism for the 18% GST imposed on stalls giving free food, water, and medications to visitors to Chaityabhoomi on Mahaparinirvan Diwas, Babasaheb Ambedkar’s death anniversary on December 6.

In an advertisement looking for applications for stalls, the BMC requested Rs.25 plus 18% GST on stalls offering free food and water, and Rs.100 + 18% GST on stalls distributing medications. Tushar Jagtap, a former senate member at the University of Mumbai, filed an objection to Bhushan Gagrani, the municipal commissioner, on October 23, citing how such taxation might hamper philanthropic action by good samaritans.

This was followed by a complaint letter from Ramesh Jadhav, a member of the Chaityabhoomi governing committee and Mumbai president of the Baudhjan Panchayat Samiti.

“The stalls organized on December 6 are for the good and upliftment of the community and society as a whole, benefiting the impoverished and Babasaheb followers from all around. These aren’t just commercial stalls. “Why should GST be charged on this?” he asked.

Jadhav added that their fight against GST at the stalls has been ongoing for years.

“Prior to COVID, the organizers of Mahaparinirvan Diwas would be called to a pre-meeting to discuss and bring these issues to the table. But for a few years now, we haven’t been adequately called, so we haven’t had the opportunity to talk about these matters,” he said, dissatisfied.

Jagtap followed up with a visit to Gagrani on Monday.

“According to GST rules, numerous charitable activities, notably medical treatments and services offered to underprivileged people, are excluded from GST. This is a piece of clear evidence that the GST fee on the free stalls was incorrectly applied,” he added, adding that Gagrani assured him that it would be investigated and eliminated.

An official from the G North ward office’s estate department, which oversees the stalls, met with a GST consultant on Tuesday and decided to waive the tax for the free stalls this year.

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