How will reduction of GST on Hajj help the Pilgrims this Year?
It's crucial to note that the GST department has recently extended a noteworthy relaxation to the Hajj travelers, who wish to go to the heavenly pilgrimage this year. The GST rate on Hajj pilgrimage will be now brought down from 18% to 5%. This is likewise going to help in boosting of air travel.
We all realize that India is known all over the world for its varied different cultures, ceremonies, and joyous traditions. As it is a secular nation, India has a political system that gives equal respect to every religion and society.
The newly indirect tax policy put into practice that is the GST regime is furthermore exercised on the secular principles. Yes, that is true! Generally, the GST council extends relaxations on numerous traditions with reference to diverse religions of the country. There are detailed provisions in the CGST Act 2017 that relieve the temples, churches, Gurdwaras, and mosques, and many other such religious places from GST tax and GST registration. Besides, they are furthermore exempted from getting GST registration.
After GST rollout, religious associations, for example, temples and mosques can charge no extra money in the name of the tax, which was earlier done during the time service tax system. Everyone realizes that nowadays devotee book for religious visits and other puja or ceremonial services online well in advance. Such services are treated genuinely under the Goods and Services Tax regime.
- In this context, it's crucial to note that the GST department has recently extended a noteworthy relaxation to the Hajj travelers, who wish to go to the heavenly pilgrimage this year.
- The GST rate on Hajj pilgrimage will be now brought down from 18% to 5%. This is likewise going to help in boosting of air travel.
#1. Why the government has given relief of GST on Hajj?
The Union Minister for Minority Affairs has informed that the Hajj 2019 is to very being sure, an impressive occasion. Over 2,67,000 applications have been already filed for the Hajj 2019 out of which 1,64,902 are over the web.
#2. What amount of GST rate reduction shall be availed on Hajj pilgrimage?
It has now been decided by the GST department to give some real relief to the hajis in respect of GST. The rate of GST pilgrimage has been plainly reduced from 18% to 5%. Very imperatively, this results in a huge reduction in air travel cost. Of course, this will, in turn, benefit the airliners having the GST registration.
#2. What measure of rate reduction will be there on plane tickets?
The revenue authorities have said that this, the Hajj travelers all over India will save around ₹113 crore by the virtue of air travel costs. This is because of the GST reduction that has been given on Hajj pilgrimage. This will help air travel and would also, for the most part, benefit the private airliners who are having GST registration.
The GST department has notified the detailed summary of how fall in GST on Hajj will directly result in the decrease of airfare from different Starting points of flight. These have been given below in detailed table diagram:
|S.No.||Starting points of the flight for Hajj||How much Airfare decreased? (in ₹)|
#3. Why is Hajj 2019 actually so unique event?
- Talking about the towering success of previous year's Hajj, Union Minister for Minority Affairs told that it was out of nowhere after the Independence that a record population of 1,75,025 Indian Muslims had performed Hajj 2018 and that too with no financial support. Out of these, nearly 48% were women.
- Presently, it is suddenly after independence that more than 2,340 Indian Muslim women are being allowed to go on Hajj without Mahram, on the directions of Prime Minister Sh. Narendra Modi. Here, Mahram refers to the husbands of the women.
- So as to further lift the pilgrimage, Sh Naqvi has informed that the Hajj process will be made entirely advanced. This will make the entire Hajj process really transparent and user-friendly.
This will likewise make GST registration necessary for all service providers since GST registration is mandatory in e-commerce.
These measures really make Hajj 2019 a delighted ride.
GST registration on Hajj
GST registration process
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