On July 20, the Government of India clarified that the reports claiming the 18 per cent GST was announced on Crematorium Services were fake.
According to PIB Fact Check, a fact-checking initiative by Press Information Bureau said, the claims that there will be 18 per cent GST on Crematorium Services were misleading. PIB added that GST is not applicable to funeral, burial, Crematorium, or mortuary services. It is only applicable to the work contracts of the Crematorium, that is, the services related to the construction and maintenance of the Crematorium.
Claim: There will be 18% GST on Crematorium Services.#PIBFactCheck
— PIB Fact Check (@PIBFactCheck) July 20, 2022
▶️This claim is #Misleading.
▶️There is no GST on funeral, burial, crematorium, or mortuary services.
▶️In this reference GST @ 18% is only applicable for work contracts and not the services. pic.twitter.com/7HE2MPMs1s
It is noteworthy that following the 47th GST Council meeting, it was announced that the GST applicable on works contracts for roads, bridges, railways, metro, effluent treatment plants, Crematoriums etc., was increased from 12 per cent to 18 per cent.
In the meeting GST on LED Lamps, lights & fixture, their metal printed circuits board is raised from 12% to 18%. Solar Water Heater and system GST raised from 5 to 12%. Works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium etc. up by 12 to 18%.
— All India Radio News (@airnewsalerts) June 29, 2022
Some of the news portals and opposition leaders misinterpreted the announcement and projected as 18 per cent GST was announced on the Crematorium services.
Dr Dhimant Purohit, editor of newzviewz.com said, “18% GST on Crematorium Services.” He was quoted by PIB during fact check.
National Media Coordinator of Congress Shailendra Choudhary questioned people what they thought about GST on Crematorium Services.
Deccan Herald’s journalist Rasheed Kappan said, “18% GST on Crematorium. As if people are dying to pay tax!”
Telangana Today’s editor Shrinivas K Reddy quoted/RTed Ground Zero India and said, “In hospitals hereon, Patient who is saved, pays huge #GST for the #bed. Patient who dies, pays huge #GST for the #crematorium. No matter what, everyone has the burden of #ModiGovt.” Interestingly, he added a screenshot of the NDTV report that clearly mentioned “work contract for crematorium”.
Former Chittapur MLA of Congress Priyank Kharge said, “BJP Govt won’t even allow you to die peacefully. 18% GST on Crematorium. Na ……… Na Marne Dunga.” He also added a screenshot of the Business Standard report clearly mentioning it was only applicable on work contracts.
Crematorium and other services exempted from GST
According to Section 7(4) of Schedule III of the GST Act 2017, Services of funeral, burial, crematorium or mortuary, including transportation of the deceased, are exempted from GST.
Earlier, there was 12 per cent GST only on the work contracts of Crematorium that was increased to 18 per cent during the 47th GST Council meeting with the approval of the states’ representatives, including from the non-NDA/BJP rules states.
Verdict: The claims that GST of 18 per cent will be applicable on crematorium services are FALSE.
