TaxTMI 
TaxTMI 
GST on Donations collected from Customers
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....ST on Donations collected from Customers<br> Query (Issue) Started By: - ROHIT GOEL Dated:- 11-4-2020 Last Reply Date:- 12-4-2020 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>Dear Sirs, One of our client(a company) runs a television broadcasting channel. Due to the COVID-19 Crisis, the company has started a campaign on their channel where they are requesting the audience to send money ....
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....to the company's bank account and then post accumulation of say ₹ 50 lakhs, the company would donate entire amount to a Trust registered u/s 12AA/80G of Income Tax Act. No part of the money would be retained by the company at all. The company is not registered u/s 80G/12AA, so my query is whether the amounts collected by the company from their customers/audience be treated as supply and....
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.... liable to GST or would it be simply treated as a transaction in money and as such held to be non taxable? Kindly advice with supporting judicial decisions/analysis of legal provisions. Reply By Rajagopalan Ranganathan: The Reply: Sir, The money collected is towards donation and not against ant supply of goods or service or both. Hence it is only amere trasaction in momey and hence it is not l....
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....iable to GST. This is my opinion. Reply By Ganeshan Kalyani: The Reply: GST is not applicable as there is no elment of supply and consideration. Reply By KASTURI SETHI: The Reply: Your client's activity is out of the definition of 'service'as defined under CGST Act. This is also out of definition of 'supply', 'consideration' and 'business' as per the definit....
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....ions of these terms in CGST Act. Board's Flyer No.3 dated 1.1.18 may help you in arriving at conclusion. I also support the views of both experts. Reply By CAVenkataprasad Pasupuleti: The Reply: It would not be liable for GST. Your client is only acting as custodian and in the nature of transaction in money. Consequently gets excluded from the definition of 'service'. I concur wit....
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....h the above views of experts. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: Not taxable under GST.<br> Discussion Forum - Knowledge Sharing ....