GST on Donation

[Ethirajan Parthasarathy]

Donations received by NGOs without any condition attached, should not attract GST since NGO does not render any “supply” to the Donar.

But there is a view that the above interpretation, is negated by the decision of AAR Maharashtra in the case of Shrimad Raj Chandra Adhyatmik Satsang Sadhana Kendra.

Experts view on the above is solicited.

[KASTURI SETHI]

Applicability of GST on donation depends upon so many factors. So it is case to case. Read the following :

GST on Charitable and Religious Trusts - C.B.E. & C. Flyer No. 39, dated 1-1-2018

 

[KASTURI SETHI]

Dear Querist,

In the judgement mentioned by you, the Religious Institution/Trust is engaged in the Commercial Activity also. The decision of AAR, Maharashtra is very much clear with evidence.

[Yash Jain]

Dear Sir,

The Question framed is not in line with Judgement.

In judgement it is stated that Commerical Activites as being undertaken by Trust is Subject to GST and is payable. The had raised 4 Question (Refer the Last page of the Order, and in none of the Question is the word “Donation”)

As for donation, it is giving / offering without expecting anything in return. So the question of having GST on Donation prima facie will not arise, as donation is not against any “Supply” and nor is it a “Consideration”

Regards

[DR.MARIAPPAN GOVINDARAJAN]

I concur with the views of Shri Yash.

AI Summary

GST Applicability on NGO Donations: AAR Maharashtra Decision Sparks Debate on Conditional vs Unconditional Contributions A query was raised about the applicability of GST on donations received by NGOs, with the argument that donations without conditions should not attract GST as they do not constitute a 'supply' to the donor. However, a decision by AAR Maharashtra in a specific case suggests otherwise. Experts provided varied opinions, noting that GST applicability depends on specific circumstances, such as whether the trust engages in commercial activities. It was clarified that donations, typically given without expecting anything in return, do not usually fall under GST as they are not considered a 'supply' or 'consideration.'