Taxing God: How much do Indian temples earn and when is GST levied?

India’s richest temple trust Tirumala Tirupati Devasthanam (TTD) will likely pay less than 1.5 percent goods and services (GST) in FY25 on its annual income of Rs 4,774 crore, a Moneycontrol analysis has found.

A controversy over claims of the Centre levying GST on temples has been raging, with the opposition Congress and the BJP trading barbs.

Over the weekend, Congress leader Jairam Ramesh pointed to a news story in a Tamil daily claiming temples were being asked to pay GST.

BJP leader Amit Malviya accused him of twisting facts and said temples and religious places enjoyed wide exemptions and the GST was applied only on commercial activities and  “not religious or spiritual activities”.

In November 2024, Sree Padmanabhaswamy temple in Thiruvananthapuram, one of the richest in the country, was slapped a notice for pending tax payments. Media reports indicate that the demand was just Rs 1.57 crore for a seven-year period, while the temple is estimated to have earned Rs 700 crore in 2014 alone.

Vaishno Devi in Jammu’s Katra, another rich temple, earned Rs 683 crore in FY24, of which Rs 255 crore came from offerings, which are tax-free and another Rs 133.3 crore from interest.

In the case of TTD, of Rs 4,800 crore earnings, over a third came from Hundi collections. The tax liability, in terms of GST, has been around Rs 130 crore in five years since FY21.

How much do temples earn?

While detailed accounts across temples are not available, the earnings of India’s two biggest temple trusts have doubled over the last seven years.

While the Tirupati trust had a budget of Rs 2,678 crore in FY17, it zoomed to Rs 5,145 crore in FY25, according to its website.

Vaishno Devi Trust’s income has gone up from Rs 380 crore in FY17 to Rs 683 crore in FY24.

How much do the temples pay in GST?

GST has moved in tandem with earnings. In the case of Tirupati, the temple paid Rs 14.7 crore in GST in FY17, Rs 15.58 crore in FY22, Rs 32.15 crore in FY23 and Rs 32.95 crore in FY24, Parliament has been told.

For Sree Padmanabhaswamy, the GST liability has been fixed at Rs 1.57 crore for seven years since 2017.

What do temples pay GST on?

Prasad and religious ceremonies are exempt from GST collections. This income was over a third in the case of TTD and Vaishno Devi.

In FY24, Vaishno Devi earned 37 percent of its income from donations. In FY25, TTD is expected to earn 34 percent of its nearly Rs 4,800 crore from donations.

GST is levied on the renting of premises if room charges are over Rs 1,000 and if community hall or open area fees are over Rs 10,000.

Shops and other spaces rented for business also do not incur GST if the monthly rent is below Rs 10,000.

GST is applicable to souvenir shops and other commercial ventures run by trusts. Vaishno Devi Trust runs a helicopter service and souvenir shops.

The trust earned 19 percent, or Rs 129.6 crore, from sales in FY24 and Rs 84 crore, or 12 percent, in rental income.