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;-

Public Health

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.

Public awareness

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

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 activities.

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 place.

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 per day.

iii) Renting of space or shops for business where charges are 10,000 or more per month.