KAKINADA/ TIRUPATI : Thanks to the TTD having decided to absorb the rise in price of laddus served as prasadam on account of GST, you may be able to enjoy the sugary goodness without having to pay more. At present the cost of production of a laddu is `33, but the TTD has subsidised it to `25.
After the GST comes into force, if the TTD is allowed no exemption, it will have to pay more for the prasadam's ingredients. The GST Council has already made it clear that there would be no tax on the purchase of laddus by pilgrims. T h o u g h t h e Tirupati Tirumala D ev a s t h a n a m s Board has made a representation to the GST Council to exempt all its transactions from GST, no decision has been announced yet.
The Council is likely to take a call on the matter on Sunday and also look into other requests such as the reduction in GST on the granite industry and textile yarn. Finance Minister Yanamala Ramakrsihnudu on Saturday said he expected a positive decision on the state's representation. Speaking to media persons at the R and B Guest House in Kakinada, he said in case of any loss to states due to the imposition of GST, the Centre would collect a compensation cess and pay it to the aggrieved party.
Meanwhile, the accounts department of the TTD and the office of the financial advisor estimated that the annual additional burden on the TTD would be `70 crore due to the imposition of GST. In 2016-17, the TTD made purchases worth `472 crore and another `200 crore was spent by the engineering department. The TTD spent `70 crore for the purchase of cashewnuts alone.
The GST on the nut is pegged at five per cent. In the same period, the TTD purchased ghee for `122 crore which will now attract a GST of 12 per cent. The various items that the T i r u p a t i T i r u m a l a Devasthanams Board purchases for its service to pilgrims will be slapped with GST between five and 23 per cent. The biggest sources of TTD's revenue are rents collected from shops and other property in the region.
Will revenuemake up for J70-cr burden?
The main revenue sources of TTD, besides donations, are rents from shops, hotels & other property,
accommodation charges and sale of human hair, raking in J160, J124 and J100 crore respectively.
GST on items it purchases is between 5- 23%.