GST on NGO and charitable Trust
The GST has impacted the industry as well as the nonprofit entity. The GST is not totally
exempt on these entities but there are few special exemption provided to these entities
as discussed. The rest all activities are chargeable to GST if they are not covered in other
exemption entry or are not considered as GST livable transaction according to
consideration for services or quid pro quo.
1. An entity registered under section 12AA of the Income tax act, 1961 act by way of
charitable activities. Where GST is exempt in case of following charitable services;-
Care or counseling;-
i) Person is ill or with severe physical or mental disability.
ii) Person is affected by AIDS or HIV
iii) Person is cured as he is addicted to narcotic drugs and alcohol.
Activities of public awareness which includes preventive health, family planning or
prevention of HIV infection.
Yoga and meditation camp
The providing of services by trust in form of yoga, spirituality or religion is exempt. Any
fees charged for entrance or as a service are exempt in GST. If there is any separate
program for it and fees include lodging, boarding and incidental charges then the whole
amount is exempt provided the main objective is providing religion, spirituality or yoga.
Training or coaching in recreational activities related to sports, art and culture
If any charitable trust registered under section 12AA of the income tax act is providing
recreational activities related to any sport in form of training or coaching in sport is exempt.
It also includes dance, music, painting, sculpture making, literary activities and theatre of
any schools, tradition or language or any of the sports.
Educational and skill development programs
The educational and skill development programs related to abandoned, orphaned,
homeless children, physically or mentally abused prisoner, or person above age of 65
years above residing from rural areas are exempt. Rest activities can be exempt if they
are covered under definition of educational institution.
Preservation of environment including watershed, forests and wildlife is exempt
Hospital Activities by Trust
The health care services are exempt in GST as provided by clinical establishment an
authorized medical practitioner or paramedics of religious and charitable trust.
Renting activities by them
Renting activities of precincts of religious place meant for general public by charitable and
religious trust registered under section 12AA of the income tax act 1961 or trust or
institution registered under section 10(23)(v) of the income tax act. The precincts are the
assets owned and include the buildings that reside within the outer boundary of the trust
i) Renting of rooms where charges are less than 1,000.
ii) Renting of premises, community halls, open area where charges are less than 10,000
iii) Renting of space or shops for business where charges are 10,000 or more per month
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