GST on NGO

[Ethirajan Parthasarathy]

A charitable organization is engaged in doing Annadhana. This activity is not included in the definition of charitable activity as defined in GST Law. In this circumstance, is there any GST liability on donations received. If not, what could be the receipt by the said NGO which will be subject to GST.

[YAGAY andSUN]

https://www.cbic.gov.in/resources//htdocs-cbec/gst/51_GST_Flyer_Chapter39.pdf;jsessionid=6F3348E485992EC28F040C1ED08EAE7F

[KASTURI SETHI]

In addition to the reply given by M/s.Yagay and Sun, Sir, also go through the following decision of AAR, Maharashtra. In this an NGO received donation for preservation of environment. This may help you.

2019 (23) G.S.T.L. 310 (A.A.R. - GST) = 2019 (3) TMI 1121 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA IN RE : ECOSAN SERVICES FOUNDATION

AI Summary

Charitable Organization Questions GST Liability on Donations for Annadhana; Seeks Guidance from GST Flyer and Maharashtra Ruling A charitable organization conducting Annadhana activities inquired about GST liability on donations, as these activities are not classified as charitable under GST law. Two responses were provided. The first referenced a GST flyer for guidance. The second suggested reviewing a decision by the Authority for Advance Ruling in Maharashtra, where an NGO's donations for environmental preservation were discussed, potentially offering relevant insights.