GST impact: TTD hikes Room rents
Tirupati: Tirumala Tirupati Devasthanams (TTD) registered for the GST on Thursday and will be updating its software to meet its norms. Room tariff and kalyana mandapam rates will be hiked once the software is installed. TTD expects an additional expenditure of Rs 32 crore due to the new tax regime; devotees will be taxed a total of Rs 19 crore. Taking all expenses into consideration TTD prepared the estimation for GST.
TTD executive officer Anil Kumar Singhal told mediapersons, “This may not affect the common man as the tax is applicable only for rooms that cost more than Rs 1,000. We do not think GST will be applicable on seva tickets.”
A three per cent GST is applicable for devotees who purchase gold coins from TTD. The rooms ranging between Rs 1,000 and Rs 2,500 will attract a tax of 12 per cent, and rooms above Rs 2,500 18 per cent. Rental for the kalyana mandapams will now cost Rs 10,000. All devotees must pay additional charges once the software is installed. GST will be added to the room rates.
The sale of prasadams is exempted under the GST. But the making of ladoos is going to be a bit more expensive comparatively in the new tax regime. TTD has written to the Centre seeking permission to exchange Rs 24-crore worth devalued currency that was offered in its hundis.