In re Travancore Devaswom Board (GST AAR Kerala)
Kerala AAR Holds GST Applicable on Temple Auction Rights Due to Commercial Licensing Nature; GST Payable on Rights to Collect Temple Offerings Since Activity Treated as Supply of Services; Kerala AAR Rules Temple Board Is a Business Entity for GST Purposes Due to Revenue-Generating Activities; GST Exemption Allowed on Coconut Harvest Rights From Temple Lands as Agricultural Activity.
The Kerala Authority for Advance Ruling (AAR) examined the GST implications of various activities undertaken by the Travancore Devaswom Board, a statutory body constituted under the Travancore-Cochin Hindu Religious Institutions Act, 1950 for administration of temples in Kerala.
The Authority first noted that an earlier rejection of the application on procedural grounds had been quashed by the Kerala High Court, which directed reconsideration of the matter on merits. Additional documents, including tender notifications, agreements, and sample receipts, were also examined.
The Board submitted that many of its activities were religious or incidental to temple administration and therefore outside the ambit of GST. These activities included auctioning rights to collect rice remnants, coconuts, abandoned clothes, agricultural produce, ritual performance rights, maintenance of public conveniences, and sale of pooja items within temple precincts.
The AAR examined whether the Board was engaged in “business” under Section 2(17) of the CGST Act and whether the activities constituted “supply” under Section 7(1). The Authority observed that the Board conducted recurring and organized auctions and tenders for consideration, granting exclusive operational rights to contractors through commercial agreements. It held that these arrangements were revenue-generating activities undertaken in the course or furtherance of business.
