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

Absence of consideration prevents GST on donations for feeding activities, but suppliers acting as agents may charge GST to donors. Donations to a Sec 12AA registered charity for annadhanam ordered for a specific day do not constitute a taxable supply where there is an absence of consideration, so GST is not payable on the donation; however, a third party supplier who supplies food acting as agent of the donor may charge GST on its supply to the donor.