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Applicability Of GST On Sale Of Goods And Services By Charitable Trust

  1. Example of Such Goods are Like– Various spiritual products such as books, audio CDs, DVDs, statutes, calendars etc. even if the Books, DVD, Are Based On teaching of Gurudev Of That Trust.
  2. Entry No.10 of the Notification No.9/2017, dt. 28.06.2017 under IGST Act, exempts the services received by charitable trust registered u/s.12AA of the IT Act, 1961, from the provider of services located outside India and the trust is not liable to pay GST on import of such services under Reverse Charge Mechanism. Any fees or consideration charged from the participant for participating in religious program or Yoga meant for advancement of religion, spirituality or yoga is exempted.
  3. Entry No.15 of Notification No.12/2017 dt. 28.06.2017– No GST is applicable on activities of public library including those run by charitable or religious trust.
  4. What can be seen from the above notifications is that specific exemption from GST is given to charitable institutions registered u/s.12AA of the IT Act, 1961. It can be gathered from the above that the intention of the legislature is to tax all the activities of supply goods and services by charitable trust except those specifically exempted

Thus it Can Be Concluded From Above That charity do not lend themselves to any specific concession or exemption from the definition of ‘supply’ or ‘business’ or ‘taxable person’. The very fact that certain services have been carved out and given out a special treatment makes it clear that all trade and commerce transaction of selling books, statutes, CDs and DVDs etc. done commercially for consideration come within the broad ambit of ‘business’ under the CGST Act. So even the services of transportation of passengers, granting of advertisement rights, publication of the trust admission to event, all will be leviable to GST.