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

GST on charitable donations questioned where meal distribution falls outside defined charitable activity; guidance sought from circulars and rulings. Query whether donations received by an NGO conducting Annadhana are subject to GST when Annadhana is not included in the statutory charitable activity definition. The question focuses on whether such donations constitute consideration for a taxable supply. The discussion cites a CBIC GST flyer and an Advance Ruling concerning NGO donations for environmental preservation as guidance for assessing GST treatment and compliance implications.