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.
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.' (AI Summary)
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