A charitable organization (Sec 12AA registered) is engaged in Annadhanam.
It has extended facility of donor specifying a day of his choice (say birthday etc) on which annadhanam is done at old age home, orphan children home etc.
Will such donation received with specific instruction that Annadhanam be done on specific day suffers GST.
Donations with specific instructions for Annadhanam not subject to GST; supplier may charge GST on supply value. A charitable organization registered under Section 12AA, which conducts Annadhanam, allows donors to specify a day for the event, such as a birthday. The question raised was whether donations with such specific instructions are subject to GST. The consensus among respondents is that since there is no consideration charged to the beneficiaries (inmates of old age homes and orphanages), the donation itself is not subject to GST. However, the supplier providing the food on behalf of the donor may charge GST on the supply value, as they act as the donor's agent. (AI Summary)
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