TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Charitable Trust Providing Environmental Services Exempt from GST Registration</h1> <h3>In Re: M/s. All India Disaster Mitigation Institute.</h3> In Re: M/s. All India Disaster Mitigation Institute. - 2020 (36) G. S. T. L. 104 (A. A. R. - GST - Guj.) Issues Involved:1. Whether the applicant is liable for registration under the GST Acts.Issue-wise Detailed Analysis:1. Nature and Objectives of the Applicant:The applicant is a charitable trust registered under the Bombay Public Trust Act, 1950, with primary objectives including disaster prevention, mitigation, management, relief administration, recovery planning, and reconstruction. The applicant offers professional services, educational programs, training, and strategic funding to various bodies to achieve these objectives.2. Contracts and Funding:The applicant enters into contracts with Indian government agencies, foreign agencies, state governments, private NGOs, and educational institutions to fulfill its objectives. Funds are raised through donations, grants, fees for research, training, consultancy assignments, and other modes as specified in the bye-laws.3. Tax Exemption Status:The applicant is registered under Section 12AA and Section 80G of the Income Tax Act, 1961, making its income exempt from income tax and allowing donors to claim deductions.4. Definition of 'Supply' and 'Business' under GST:For a transaction to qualify as a 'supply' under Section 7(1) of the GST Acts, it must be in the course or furtherance of 'business' as defined under Section 2(17). The applicant contends that it is not engaged in 'business' as its activities are charitable and not commercial.5. Supreme Court and High Court Judgments:The applicant cites multiple judgments, including the Supreme Court's ruling in Commissioner of Sales Tax vs. Sai Publication Fund, which held that activities incidental to the main charitable objective do not constitute 'business'. Similar judgments from various High Courts support the applicant's claim that it is not engaged in business and hence not liable for GST registration.6. Charitable Activities Exemption under GST:Even if the applicant's activities qualify as 'supply', they are exempt from GST under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, which exempts services by entities registered under Section 12AA of the Income Tax Act by way of charitable activities. The applicant's activities relating to disaster prevention, mitigation, and management are considered as 'preservation of environment', thus falling under the definition of 'charitable activities'.7. Exemption from Registration:Section 23(1)(a) of the GST Acts exempts entities exclusively supplying exempt goods or services from registration. Since the applicant's activities are charitable and exempt from tax, it is not required to register under GST.Judgment:The Authority for Advance Ruling concluded that the applicant is not liable for registration under the GST Acts if engaged exclusively in supplying goods or services that are not liable to tax or are wholly exempt from tax, including services by way of 'charitable activities' as defined in the relevant exemption notification.
TaxTMI 