In re Chelliah Rangaraj (GST AAR Tamilnadu)
In the matter concerning collection of human hair from Authority for Advance Ruling Tamil Nadu, the applicant, a registered person engaged in collecting human hair from Arulmigu Mariamman Temple, Samayapuram, challenged the levy of GST on the auction amount collected by the temple authorities for granting rights to collect human hair.
The applicant stated that the temple authorities, functioning under the Hindu Religious and Charitable Endowments (HR & CE) Department, conduct auctions for the activity of collecting human hair from devotees who offer tonsure as part of religious practice. The applicant participated in the auction and paid the auction amount to the temple authorities, who also collected GST on the amount. The applicant argued that the temple was not rendering any “service” under the CGST Act either to devotees or to bidders participating in the auction process. It was contended that the temple is a place of worship and activities connected with religious worship and tonsuring should not fall within GST provisions.
The applicant further argued that the temple was not carrying on commercial business activities and that the fees collected were deposited into the public account of the State Government through the HR & CE Department. According to the applicant, the temple had no pecuniary benefit and therefore the activity did not qualify as “business” under the GST law. The applicant also argued that human hair itself was exempt from GST and consequently the auction amount collected for permitting collection of hair should also be exempt.
