BMC scraps GST on free stalls on Mahaparinirvan Diwas
BMC scrapped the 18% GST on free food, water, and medicine stalls for Mahaparinirvan Diwas after public backlash and complaints from community leaders.
MUMBAI: After backlash on the 18% GST charged on stalls distributing free food, water and medicines for visitors to Chaityabhoomi on Mahaparinirvan Diwas, the death anniversary of Babasaheb Ambedkar, on December 6, BMC decided to scrap the tax on Tuesday.

In an advertisement published by BMC calling for applications for the stalls, it asked for ₹25 plus 18% GST on stalls distributing free food and water, and ₹100 + 18% GST on stalls distributing medicines. Highlighting how such taxation could hinder the philanthropic activity by good samaritans, Tushar Jagtap, former senate member in the University of Mumbai, submitted his objection to Bhushan Gagrani, the municipal commissioner, on October 23.
This was followed by a complaint letter by Ramesh Jadhav, member of the Chaityabhoomi managing committee and Mumbai president of the Baudhjan Panchayat Samiti. “The stalls held on December 6 are for the good and upliftment of the community and society at large, which aid the poor and followers of Babasaheb that come from all around. These are not strictly commercial stalls. Why should GST be charged on this?” he asked.
Jadhav explained their fight against GST on the stalls has been ongoing for years. “Before COVID, the organizers of Mahaparinirvan Diwas would be called for the pre-meeting to discuss these issues and bring it up on the table. But for a few years now, we haven’t been called properly so we do not have the opportunity to discuss these issues,” he said, dissatisfied.
Jagtap followed this up with a visit to Gagrani on Monday. “In accordance with GST rules, GST is exempt on several charitable activities, including medical services and services provided to marginalised communities among others. This is a clear indication that the GST levy on the free stalls has been erroneously applied,” he said, adding that Gagrani assured him it would be looked into and scrapped.
On Tuesday, an official from the G North ward office’s estate department, in charge of the stalls, had a consultation with a GST consultant and the decision to scrap the tax for the free stalls this year was taken.
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