Union Finance Minister Nirmala Sitharaman said that Prasadam will be exempted from the Goods and Services Tax (GST). She made this announcement while discussing the Finance Bill 2025 in the Lok Sabha on Tuesday, as part of the second phase of the Budget session. A number of important financial announcements were made during this session. Sitharaman explained that no GST will be charged on Prasadam given in temples and places of worship.
Repeal of Digital Tax
The Finance Minister also announced the repeal of the equalization levy or digital tax on online advertisements. This is an effort to stabilize the global economic environment. The abolition of this tax is included in the 59 amendments made to the Finance Bill 2025 in the Lok Sabha.
The move comes after the US government issued a threat of retaliatory tariffs against India from April 2. The experts feel that scrapping the equalization levy on online advertisements will favor international technology firms like Google, Meta, and X. India had levied a 6% equalization levy on online advertisement services from June 1, 2016, which has been done away with now.
Income Tax Bill to Be Discussed in Monsoon Session
Sitharaman also assured that the new Income Tax Bill, which was brought in the first phase of the Union Budget, will be discussed in the next Monsoon Session of Parliament. The bill was initially tabled in the Lok Sabha on February 13 and subsequently sent to a select committee for examination. The committee will present its report prior to the next Parliament session, following which the discussions will be held.
Moreover, Sitharaman also said that customs duties will be rationalized to favor domestic production, increase exports, and give relief to ordinary citizens. After these announcements, the Lok Sabha passed the Finance Bill 2025.
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