Donations are collected by temple in Donation Box. There is no 'supply' involved in this. The same is not considered as exempt supplies as there is no 'Supply.
As per Rule 42, the ITC needs to be reversed in case of exempted supplies. While applying the formula for calculation whether 'Donations' will form Part of turnover or the same should be ignored as there is NO Supply?
Religious Trust Donations Excluded from GST Turnover Calculation for ITC Reversal under Rule 42; Not Considered 'Supply'. A discussion on a forum addressed whether donations collected by a religious trust should be considered in the calculation of turnover for Goods and Services Tax (GST) purposes, specifically regarding Input Tax Credit (ITC) reversal under Rule 42. The consensus was that donations, collected without any supply of goods or services, should not be included in the turnover calculation for GSTR9/9C, as they do not constitute a 'supply' and therefore should not impact ITC reversal calculations. (AI Summary)
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