TaxTMI 
TaxTMI 
2022 (8) TMI 972
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.... Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act, KGST Act. 2. The applicant is a society registered under The Karnataka Society Registration Act, at Madikeri, which is a century old club involved in Golf activities. They received a donation of Rs.1 Crore, during 2021-22, from a person, who is not a member of their club; the donation received with natural love and affection towards Golf and without any consideration and no publicity involved in the form of Advertising and Promotion of business. 3. In view of the above, the applicant has sought advance ruling in respect of the question that whether the donation amount is taxable under GST or not? If taxable....
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....d as Charitable Trust under Section 12AA of Income Tax Act 1961. 5.2 The applicant is not involved in any services mentioned under SI.No.1 of Notification No.12/2017 dated 28.06.2017. All payments will be taxable. 5.3 As per the application, Mr. Mahendran Balachandran, who has donated Rs.1 Crore on voluntary basis is neither a member of the club nor does he have any relationship with the club. The donation has been made out of natural love and affection without a quid pro quo. This claim is hard to believe as the club is not involved in any kind of social work and donation to such organization can't be without a motive. 5.4 In this case, the donation given by the person in the form of money consideration to club to carry out th....
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....the letter of the donar that the donation is without any instructions or without any quid pro quo in the form of any supply of goods or services by the applicant; there is no relationship between donor and the applicant; the donation is without any favour in return; the donor provides financial support in the form of donation and the said donation is not aimed at giving publicity to the donor in such a manner that it would be an advertising or promotion of donar's business; there is no supply of service for consideration; the donation was given out of natural love & affection and thus the amount of donation is not taxable under GST. 10. The applicant placed reliance on the ruling of AAR, Maharashtra in the case of M/s Jayashankar Gra....
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....ken or proposed to be undertaken by the applicant; Section 7. Scope of supply.- (1) For the purposes of this Act, the expression -"supply" includes- (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (emphasis added) It is evident from the above provisions that advance ruling can be sought under Section 97 only for supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. Supply, as per Section 7(1), includes all forms of supply of goods or services or both, made or agreed to be made for a consideration by the a....