Levy of GST— The applicant vide their application for Advance Ruling has submitted that they are a Charitable Trust and are running a medical store where medicines are given at a lower rate and the motive of the trust is not profit.
Applicant raised following questions for advance ruling:-

1. Whether GST Registration is required for medical store run by Charitable Trust?

2. Whether medical Store providing medicines at a lower rate amounts to supply of goods?

Held that— The applicant is providing medicines from its medical store at lower rate, so activity of dealer is to provide medicines with less pecuniary benefit. As per the definition of ‘business’ any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit is termed as business. Hence, it is clear that any trade carried out whether for pecuniary benefit or not is a business as per CGST Act, 2017. Therefore, the applicant is carrying out business activity as per CGST Act, 2017.

Medicine is goods as per subsection 52 of Section 2 of the CGST Act, 2017. Medicine is a taxable supply as per sub section 108 of section 2 of CGST Act, 2017 and GST is leviable on medicine as per Chapter-30 of HSN code. Therefore, sale of medicine by the applicant is a taxable supply of goods.

we conclude that the applicant is making taxable supply from its medical store, so as and when aggregate turnover (here medicine) of applicant exceeds threshold limit as specified in sub-section(1) of Section 22 of the CGST Act, 2017, the applicant has to obtain registration under the relevant provisions of the CGST Act, 2017.—Nagri Eye Research Foundation, In Re… [2020] 24 TAXLOK.COM 037 (AAR-Gujarat)