SC rejects pleas seeking GST exemption for Haj, Umrah services
It has been further alleged that taxation is discriminatory as it exempts certain pilgrimage undertaken via 'Haj Committee of India'.
- Jul 26, 2022,
- Updated Jul 26, 2022 3:39 PM IST
The Supreme Court on Tuesday dismissed pleas by private tour operators seeking exemption from Goods and Services Tax (GST) levied on Haj and Umrah services meant for pilgrims travelling to Saudi Arabia.
A bench headed by Justices AM Khanwilkar dismissed the plea filed by All India Haj & Umrah Tour Organizer Association and other tour operators, according to a report by Bar and Bench.
The pleas filed under Article 245 of the Indian Constitution have pointed out that 'no tax law can be applicable on extra territorial activities'. It has been further alleged that taxation is discriminatory as it exempts certain pilgrimage undertaken via 'Haj Committee of India'.
Advocate Haris Beeran, representing the petitioners said that the journey till Haj or Mecca is also part of the religious ceremony and should be eligible for exemption.
On May 5, the top court reserved its order on various pleas by tour operators seeking GST exemption after hearing the parties. The tour operators had moved the top court challenging the levy of GST on Hajis who avail services offered by them.
As per senior counsel Arvind Datar, tax benefits are only granted to those availing the government quota, while the 30 per cent of others have to pay tax towards facilitating Haj, the report further added.
While requesting for tax exemption, Advocate Data had said that "unlike pilgrimages by Hindus to Kashi or Badrinath, Haj was obligatory for adherents of Islam" to which Justice Khanwilker responded saying, "[Such] comparison can draw into debate everything. Being rationalist is part of being Hindu", Bar and Bench quoted him as saying.
As per the current GST laws, 5 per cent levy (with input tax credit) is applicable on air travel by pilgrims who utilise the services of non-scheduled/charter operations for religious pilgrimage facilitated by the Centre.
Though, if the pilgrimage services are facilitated by the External Affairs Ministry under bilateral arrangement, this tax won't be applicable.
The Supreme Court on Tuesday dismissed pleas by private tour operators seeking exemption from Goods and Services Tax (GST) levied on Haj and Umrah services meant for pilgrims travelling to Saudi Arabia.
A bench headed by Justices AM Khanwilkar dismissed the plea filed by All India Haj & Umrah Tour Organizer Association and other tour operators, according to a report by Bar and Bench.
The pleas filed under Article 245 of the Indian Constitution have pointed out that 'no tax law can be applicable on extra territorial activities'. It has been further alleged that taxation is discriminatory as it exempts certain pilgrimage undertaken via 'Haj Committee of India'.
Advocate Haris Beeran, representing the petitioners said that the journey till Haj or Mecca is also part of the religious ceremony and should be eligible for exemption.
On May 5, the top court reserved its order on various pleas by tour operators seeking GST exemption after hearing the parties. The tour operators had moved the top court challenging the levy of GST on Hajis who avail services offered by them.
As per senior counsel Arvind Datar, tax benefits are only granted to those availing the government quota, while the 30 per cent of others have to pay tax towards facilitating Haj, the report further added.
While requesting for tax exemption, Advocate Data had said that "unlike pilgrimages by Hindus to Kashi or Badrinath, Haj was obligatory for adherents of Islam" to which Justice Khanwilker responded saying, "[Such] comparison can draw into debate everything. Being rationalist is part of being Hindu", Bar and Bench quoted him as saying.
As per the current GST laws, 5 per cent levy (with input tax credit) is applicable on air travel by pilgrims who utilise the services of non-scheduled/charter operations for religious pilgrimage facilitated by the Centre.
Though, if the pilgrimage services are facilitated by the External Affairs Ministry under bilateral arrangement, this tax won't be applicable.