Understanding Temple Earnings and GST Implications
Temples in India generate substantial revenue through donations, services, and commercial activities. However, a key question arises: Do temples pay GST? The answer lies in distinguishing between religious donations and taxable commercial activities.
How Much Do Indian Temples Earn?
While financial disclosures vary, estimates suggest that India’s top temple trusts accumulate thousands of crores annually. Notably:
| Temple | FY25 Estimated Earnings | Primary Revenue Sources |
|---|---|---|
| Tirumala Tirupati Devasthanam (TTD) | ₹4,800 crore | Donations, Prasad sales, Rentals |
| Vaishno Devi Trust | ₹683 crore | Donations, Helicopter service, Shops |
| Sree Padmanabhaswamy Temple | ₹700 crore (2014 est.) | Offerings, Rentals, Interest Income |
When is GST Levied on Temples?
Contrary to social media speculation, GST does not apply to donations or religious rituals. Instead, tax is imposed only on commercial activities carried out by temple trusts.
GST-Exempt Activities
- Donations & Offerings: Contributions made voluntarily are 100% tax-free.
- Prasad & Rituals: Sale of Prasad and fees for pujas or darshan are exempt.
- Charitable Services: Free meals (Annadanam) and other charity-driven activities are not taxable.
GST-Applied Activities
| Activity | GST Applicability |
| Renting rooms (if charges exceed ₹1,000) | 12% GST |
| Renting community halls (over ₹10,000) | 18% GST |
| Commercial Shops (monthly rent > ₹10,000) | 18% GST |
| Souvenir Shops, Sales & Merchandise | 12%-18% GST |
| Paid Helicopter Services (Vaishno Devi) | 18% GST |
How Much GST Do Temples Pay?
GST liability varies depending on the scale of commercial activities. For instance:
- Tirumala Tirupati Devasthanam (TTD): Paid ₹130 crore in GST between FY21 and FY25.
- Vaishno Devi Trust: Earned ₹129.6 crore from sales and ₹84 crore from rentals in FY24, subject to GST.
- Sree Padmanabhaswamy Temple: Received a ₹1.57 crore GST notice for a seven-year period.
Legal Insights & Case Laws
1. Sree Padmanabhaswamy Temple Case (2024)
A tax notice of ₹1.57 crore was issued for GST arrears since 2017. The temple trust challenged the notice, arguing that their services were primarily religious. However, the tax department clarified that commercial rentals and sales were taxable.
2. Tirupati Temple Trust’s Legal Compliance
TTD, managing ₹4,800 crore in annual revenue, proactively pays GST on taxable activities. Their transparency has avoided legal disputes.
3. Supreme Court Ruling on GST & Religious Institutions
In 2023, the Supreme Court ruled that religious donations and spiritual services cannot be taxed, reinforcing GST exemptions for core religious activities.
Key Takeaways for Businesses & Professionals
- Religious donations remain tax-free.
- If a religious trust rents properties, it must register for GST.
- Commercial services like accommodation, sales, and paid transport attract GST.
- Transparency in accounting helps temples avoid tax disputes.
Final Thoughts
While religious donations and spiritual services remain GST-free, temples engaging in business-like activities must comply with tax regulations. Understanding these nuances helps prevent misinformation and ensures transparency in temple finances.