Payment of GST by Charitable Trust

[Arunachalam M]

Dear Experts,

I request the experts to kindly clarify, whether a Registered Charitable Trust which got 12AA exemption from Income Tax is liable to pay GST on account of constructing a trust building.

Any exemption is available for non payment of the GST to the builder.

An early reply will be helpful in this regard.

Thanks in advance,

Regards,

ArunachalamM

AI Summary

Charitable Trust's Building Construction Not Exempt from GST: Notification No. 12/2017 Clarifies No Exemption for Services Received. A Registered Charitable Trust with 12AA exemption inquired about its liability to pay GST for constructing a trust building. Experts clarified that no GST exemption applies in this situation. The exemption under Notification No. 12/2017 pertains only to services supplied by the trust as part of its charitable activities, not to construction services. The trust is considered a recipient of the service, and thus the exemption does not apply. Construction services do not fall under the definition of 'charitable activities' as per the notification.