GST Applicability - Specific Donations

[Ethirajan Parthasarathy]

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.

[Rajagopalan Ranganathan]

Sir,

The donor give the donation for feeding inmates of old age home and orphan children. Since no consideration is charged on the old age home and orphan children home the food is supplied without consideration. since there is no consideration no gst is payable on the donation. However the person who supples the food on behaf of the donar will charge gst on the value of supply from the donar since the supplier supplies the foods on behaf of the donar as an agent of the donar.

[KASTURI SETHI]

Yes. I am also of the same view.

[Ganeshan Kalyani]

I too of the same view. Since, there is no consideration there is no GST.

[YAGAY andSUN]

In this matter two basis elements are missing i.e. Supply and Consideration as donations were for a noble cause, hence GST on donation will not be applicable, as rightly replied by experts.

AI Summary

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.