PRIVATE CHARITABLE TRUST

[Sanjeev Agrawal]

Dear All Learned Members,
I wanted to know the complete tax mechanism in gst in case where government grants are received by private charitable trust for cultural event either under reverse charge or forward charge

AI Summary

Clarification Needed on GST Taxability of Government Grants to Charitable Trusts for Cultural Events and Exhibitions A private charitable trust, operational for 41 years, conducts annual exhibitions and cultural events. It receives government grants to pay artists for performances. The query concerns whether these grants are taxable under GST, either by reverse charge to the government or forward charge to the trust. Responses indicate that grants, akin to subsidies, are generally not taxable if they do not result in commercial gain. However, if the trust benefits commercially from the grant, it may be taxable. Clarification on conditions attached to the grants is necessary to determine GST liability.