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Applicability of gst to a society floated by government which has got registration u/s 12a as charitable hospital

ajithkumar (dd) (36 Points)

24 June 2017

A cancer centre with 12A registration floated under Travancore charitable societies Act 1955 owned by Governemnt of Kerala and whether GST registration is needed for them. Also TDS applicability under GST for the society is doubted and please clarify

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9 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 24 June 2017

Charitable service by your organization are exempted under.............

Services by an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) by way of charitable activities;[Charitable activities may be defined as presently in notification No 25/2012-ST.

If that is the only activity provided......... then no need of registration under GST.......

Preeyum Sircar (63 Points)
Replied 10 August 2017

@ dhirajlal..
If the same charitable hospital which is registered under sec 12 of income tax is having chemist and optical shops in the same premises then do those shops need to acquire registration?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 10 August 2017

Yes, if trading activity

Preeyum Sircar (63 Points)
Replied 10 August 2017

@ dhirajlal.. Definitely trading is going there. But lemme also clear a point dt both the chemist n optical shops are owned by the same charitable hospital owner n their trading premises lies in the same charitable hospital's premises. Sm other CA's are telling dt i shouldn't as turnover of those shops is less than 20L. N the GST CALLING PORTAL says dt i shud mk them registered.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 10 August 2017

Turnover is calculated in aggregate of all the taxable and non taxable/exempt services of the trust, because trust is running the shops. So, if overall turnover exceeds 20 lakhs, you are required to get registered. The Ca's might be under the impression that the shops are run by different entity who also runs the hospital.

If the trust rent out these shops to some other persons (as charitable activity), the scenario gets changed.

Preeyum Sircar (63 Points)
Replied 10 August 2017

@ dhirajlal.. Okay. Thanks sir. Am sealing this with the final conclusion dt in ny case owner has only the sole business of charitable hospital including the shops i mentioned above in his premises which means dt ge has only an exempt source of income which is though greater than ₹20 laks in totality. According to u, i shud go foh registration!? Yeah?

Preeyum Sircar (63 Points)
Replied 10 August 2017

@ dhirajlal.. Refer this cmmnt, the above might hv sm discrepancies.

Okay. Thanks sir. Am sealing this with the final conclusion dt in my case owner has only the sole business of charitable hospital including the shops which are of course not rented as i mentioned above in his premises which means dt he has only an exempt source of income which is though greater than â‚¹20 laks in totality. According to u, i shud go foh registration!? Yeah?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 11 August 2017

" If only exempt supplies"....... No need to register

" If all the supplies are as per trust deed approved as charitable activities, by Charity Commissioner (in addition under section 12AA of the Income tax Act, 1961)" No need of registration...

But any other activity for monetary gains........ will be treated as Business activity...... and hence the compliances under GST will get attracted.