Circular regarding Donations / Gifts received by Charitable Trusts

[MUTHAIAH NACHIAPPAN]

Dear Professional Colleagues,

The CBIC issued Circular No. 116/35/2019-GST dated 11th of October 2019, clarifying that donations / gifts received from Individuals by the Charitable Trusts will not attract GST though their name been displayed in the premises of the Charitable Trusts with no reference or mention of any business activity.

Their arises the following questions:

1. Whether mentioning of Name of the Individuals with his Organisation Name in the premises of the charitable trust would attract GST?

2. Whether hanging of Calendars (Daily / Monthly, which will have the Business Activity with Logo, Address and Contact Nos.) of the Donors in the premises of the Charitable trust will attribute to advertisement, if so whether it would attract GST?

Pl. clarify

Thanks

[KASTURI SETHI]

Query-wise reply is as under:

1.NO

2. YES

[Ganeshan Kalyani]

Yes, in the second query the nature is of advertisement and chargeable to GST.

AI Summary

GST on donations: donor name display alone not taxable, donor-branded promotional items treated as taxable advertisement.
Donations or gifts from individuals are not subject to GST when a donor's name is displayed at a charitable trust without reference to any business activity; by contrast, donor-branded materials that convey business information (logos, addresses, contact numbers) constitute advertising and are taxable as a supply under GST.