SC dismisses petitions seeking GST exemption on Haj services for pilgrims

The Supreme Court on Tuesday dismissed petitions from various private tour operators seeking Goods and Services Tax (GST) exemption for Haj and Umrah services offered to pilgrims travelling to Saudi Arabia. 

A bench of Justices A M Khanwilkar, A S Oka and C T Ravikumar pronounced the judgment, saying they "dismissed" the petitions on both the grounds of exemption and discrimination."

The argument raised by petitioners on extraterritorial application of GST for services given outside India is kept open, as it is pending before another bench, said Justice Oka, reported Livelaw. 

The private tour operators challenged the GST on Haj and Umrah services offered to pilgrims on the grounds that no tax law can be applicable to extraterritorial activities per Article 245 of the Constitution.  

They have argued that the services consumed outside India cannot be subject to GST.

The petitioners also argued that tax is discriminatory as certain hajis, who undertake the pilgrimage through the Haj Committee of India are exempted. 

A GST of 5 per cent (with input tax credit) is levied on air travel who avail services of non-scheduled/charter operations for religious pilgrimage facilitated by the central government under bilateral arrangements. But, if such services are of a specific organisation facilitated by the External Affairs Ministry under a bilateral arrangement, the GST rate would be nil.