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 Not Applicable on Individual Donations to Charitable Trusts; Displaying Business Details as Advertising Attracts GST A discussion on a forum addressed questions regarding the applicability of GST on donations or gifts received by charitable trusts. A circular from the CBIC clarified that donations from individuals do not attract GST even if the donor's name is displayed on the premises without reference to business activity. The queries raised were whether displaying a donor's name with their organization name incurs GST and whether displaying donor calendars with business details constitutes advertising subject to GST. Responses indicated that the first scenario does not attract GST, while the second scenario is considered advertising and is chargeable to GST.