The Sree Padmanabhaswamy Temple has been served a notice over unpaid taxes totaling ₹1.57 crore for the period from July 2017 to March 2024. The Directorate General of GST Intelligence (Kozhikode Regional Unit), under the Central Board of Indirect Taxes and Customs, issued this notice in August, requesting an explanation as to why the unpaid amount, including interest and penalties, should not be collected.
Breakdown of Tax Dues
The pending tax amount consists of:
- Central GST: ₹77,00,203
- State GST: ₹77,00,203
- Kerala Flood Cess: ₹2,92,474
The authorities identified that the temple had not paid GST on several services, including rental income, cloakroom services, dhotis, deity images, publications, photographs, and fees for temple elephant hire.
Investigation and Non-Compliance
GST officials launched an investigation after discovering that the temple was not paying GST on both services provided under the forward charge mechanism and services received under the reverse charge mechanism. An inspection was carried out at the temple’s office in February this year to assess compliance.
Temple’s Stance on GST Exemption
The temple authorities argue that, as a religious institution, the services offered do not fall under commercial transactions and should therefore be exempt from GST. A spokesperson mentioned that the temple is actively working on responding to the notice.
