In case of donations, if the gift or donation is made to a charitable organization; the payment has the character of gift or donation and the purpose is philanthropic (i.e. it leads to no commercial gain) and not advertisement, then GST is not leviable. In all other cases GST is leviable.
Levy of GST— In the instant case, applicant seeking an advance ruling in respect of the following questions.
1. Whether applicant is required to obtain registration under the Maharashtra Goods and Service Tax Act, 2017?
2. If answer to above question is affirmative, whether the applicant is liable to pay GST on the amounts received in the form of Donation / Grants from various entities including Central Government and State Government.
3. If answer to above question 2 is affirmative, what will be the rate at which the GST would be charged?
The Applicant is a Charitable Trust registered under section 80 G (5) of Income Tax Act and also under section 12AA of the Income Tax Act.
Held that— The activities undertaken by the applicant do not conform strictly to the definition of a ‘charitable activity, the applicant shall obtain registration under GST Act.
Where all the three conditions are satisfied namely the gift or donation is made to a charitable organization, the payment has the character of gift or donation and the purpose is philanthropic (i.e. it leads to no commercial gain) and not advertisement, GST is not leviable.
The subject services supplied by the applicant are covered under SAC 9993 and attract GST @18%
In case of donations, if the gift or donation is made to a charitable organization; the payment has the character of gift or donation and the purpose is philanthropic (i.e. it leads to no commercial gain) and not advertisement, then GST is not leviable. In all other cases GST is leviable.
Levy of GST— In the instant case, applicant seeking an advance ruling in respect of the following questions.
1. Whether applicant is required to obtain registration under the Maharashtra Goods and Service Tax Act, 2017?
2. If answer to above question is affirmative, whether the applicant is liable to pay GST on the amounts received in the form of Donation / Grants from various entities including Central Government and State Government.
3. If answer to above question 2 is affirmative, what will be the rate at which the GST would be charged?
The Applicant is a Charitable Trust registered under section 80 G (5) of Income Tax Act and also under section 12AA of the Income Tax Act.
Held that— The activities undertaken by the applicant do not conform strictly to the definition of a ‘charitable activity, the applicant shall obtain registration under GST Act.
Where all the three conditions are satisfied namely the gift or donation is made to a charitable organization, the payment has the character of gift or donation and the purpose is philanthropic (i.e. it leads to no commercial gain) and not advertisement, GST is not leviable.
The subject services supplied by the applicant are covered under SAC 9993 and attract GST @18%