Explained: Why GST on garba has left Gujarat perplexed

Furor over the imposition of Goods and Services Tax (GST) doesn’t seem to abate as Navratri garba in the state of Gujarat has found itself under the ambit of the new taxation system and the Congress’ and Aam Aadmi Party’s state units have been protesting against the Centre over the issue. It recently came to light that GST of 18 per cent has been imposed on ticketed garba events, according to a report by India Today it claimed that VAT and service tax were imposed on entry passes for the traditional dance event earlier. Congress Rajya Sabha MP Jairam Ramesh took to Twitter on Thursday, calling it “Garba Samapth Tax” a day after the Vadodara city unit of the Congress protested by playing garba on the campus of the Vadodara District Collectorate and submitted a memorandum. On Wednesday, AAP workers held protests in Vadodara and Surat city with garba performances on the streets, which led to their detention by police. “People of Gujarat are very angry. The BJP has formed the government with the blessings of Hindus and now the government wants to earn money by imposing tax on garba, which is a Hindu tradition and the identity and pride of Gujarat. BJP wants to destroy Gujarat’s identity by imposing tax on garba,” alleged senior Congress leader Amit Chavda. Gopal Italia, president of Gujarat AAP, shot a letter to Chief Minister Bhupendra Patel demanding withdrawal of GST on garba events. “People are attached to garba as it is a matter of our faith. Imposing tax on people’s faith shows the BJP’s low level mentality. There was never a tax on worshiping our Gods. We condemn this act by the BJP and demand immediate withdrawal of this tax,” said Italia. What is the latest controversy related to GST? The festival of Navratri is one of the most-awaited and revered events in Gujarat. The nine nights of Navratri are celebrated with garba as an obeisance to Goddess Ambe. Revellers and devotees from Gujarat and nearby states flock to attend Navratri garba. Many major garba organisers open booking months in advance for the festival, which will be held from 26 September to 5 October. A controversy has broken out over skyrocketing prices for garba passes after an inclusion of 18 per cent GST. According to The Indian Express, exemption from the GST only applies to organisers charging less than Rs 500 per pass. As per the report, it is for the first time since the implementation of the GST system in 2017 that garba venues are charging direct GST on entry tickets. In Vadodara, the United Way of Baroda (UWB), the biggest garba organiser in the state, opened the registrations for this year’s event last week. This year, the passes have been priced at Rs 4,838 for men and Rs 1,298 for women. After the previous garba events held in 2019, the organisation took the discussion with GST officials to implement the taxation system. In 2020 and 2021, garbas were not organised due to the Covid-19 pandemic. According to The Indian Express, Minesh Patel, treasurer and trustee of UWB, said that, “After the previous public garba in 2019, the officials of the tax departments had conducted inspections of GST records of a few other garba organisers… During that time they pointed out that issuing passes or identity cards for a fee or against an invoice would automatically make it liable for GST. To comply with the taxation laws, we have added GST this year.” Is the tax legal? Very much so, officials have said. No new changes have been made to the GST rules, they said. According to The Indian Express report, which cites a top GST official, a service tax of 15 per cent was levied on entry in the pre-GST period if the amount charged for the ticket exceeded Rs 500 per person. “Currently, too, GST at the rate of 18 per cent is payable only if the entry ticket for any garba or such event exceeds Rs 500 as per the notification of the Department of Revenue of the Union Ministry of Finance, dated June 28, 2017 [Notification No. 12/2017-CT(R)]. Thus, the tax under the GST regime has remained the same as the pre-GST regime,” the GST official added. The UWB which is listed as an NGO receives the pass money as a form of ‘donation’, which is diverted for social causes, Hemant Shah, chairman of the Resource Development Committee of UWB said. “For us, the garba is not a commercial activity. At the same time, we cannot pay the tax and exempt the players because 18 per cent is a huge amount.” An official said, “The term ‘donation’ does not apply in the case of garba tickets, simply because these organisers are issuing invoices and selling the passes. Wherever there is an invoice, there is a tax. Anything that involves a sale is automatically a commercial activity deemed to be for profit.” “So, organisers cannot take shelter in the name of donation just because it is a part of a religious festival. If that is the case, it should be free,” the official said, adding prices can be kept under Rs 500 for avoiding the tax. With inputs from agencies Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.