GST applicabilty on Charitable Trust Educational Institution

[CAPurnima Bothra]

Request you to suggest if GST is applicable on hostel accommodation and mess facility provided to student within campus by charitable trust (but not providing charitable activities)reg u/s 12AA of income tax act.This trust is basically running various colleges.GST is not applicable on various courses for provided by these colleges as they are affiliated with government universities i.e qualification recognized by any law for the time being in force.But what about GST applicability on other services provided by it?

[KASTURI SETHI]

Only registration under Section 12AA of the Income Tax Act does not make an assessee eligible for exemption.If any activity carried out by the Charitable Trust is commercial, that is liable to GST unless otherwise specifically exempted.

[KASTURI SETHI]

For more clarification read C.B.E. & C. Flyer No. 39, dated 1-1-2018.

[Rajagopalan Ranganathan]

Sir,

According to Sl. No. 80 of Notification No. 12/2017- Central Tax (Rate) dated 28.6.2017 as amended "Services by way of training or coaching in recreational activities relating to-

(a) arts or culture, or

(b) sports by charitable entities registered under section 12AA of the Income-tax Act. falling under heading No. 9996 are exempt from payment of gst. All other services provided by charitable entities registered under section 12AA of the Income-tax Act are liable to gst.

Similarly according to Sl. No. 83 of Notification No. 9/2017-Integrated Tax (Rate) dated 28.6.2017 as amended the above mentioned services provided by charitable entities registered under section 12AA of the Income-tax Act are exempt from payment of igst. All other services provided by charitable entities registered under section 12AA of the Income-tax Act are liable to igst.

sl. No.

AI Summary

GST liability on services by charitable entities: exemptions limited to recreational arts, culture and sports training; other services taxable. GST depends on the nature of each activity; tax registration alone does not exempt a charitable entity. Exemption is limited to recreational training or coaching in arts, culture or sports supplied by registered charitable entities; other services, including non exempt campus facilities, are taxable under GST/IGST.