GST on Donation

[Navy G]

Suppose a company is receiving donations from its employees/staff in lieu of COVID-19 and these proceeds are utilized to provide food and other groceries to staff members of housekeeping or security. So will receipt of donation from employees attract any GST?

AI Summary

GST Query: Are Employee Donations for Staff Food Supplies During COVID-19 Taxable? Opinions Differ on Tax Implications. A company receiving employee donations to provide food and groceries for housekeeping or security staff during COVID-19 raises a GST query. One opinion states that monetary donations, without a reciprocal supply of goods or services, do not attract GST. Another view suggests that if the donations are considered payment for food supply, it could be taxable unless the company acts as a pure agent, matching donations to expenses without surplus. Additionally, exemptions apply only to entities registered for charitable purposes. The consensus leans towards no GST on donations without direct supply in return.