Specified services supplied by the charitable and religious trust are exempted and it's been provided in notification No.12/2017-Central tax dated 28th June 2017 S.Nos.1, 13 and 80.
Provided charitable activities supplied by an entity is registered under section 12AA of the income tax Act,1961.
'Charitable activities' means activities relating to:
Public health by way of:
2) Care or counselling of
- A terminally ill person or persons with severe physical or mental disability;
- Persons afflicted with HIV or AIDS;
- Persons addicted to a dependence forming substance such as narcotics drugs or alcohol;
(B) Public awareness of preventive health, family planning or prevention of HIV infections;
2) Advancement of religion, spirituality or yoga;
3) Advancement of educational programmes or skill development relating to;
(A) Abandoned, orphaned or homeless children
(B) Physically or mentally abused or traumatized persons
(D) Persons over the age of 65 years residing in a rural area
4) Preservation of environment including watershed, forests and wildlife.
Thus, services supplied by charitable trusts are exempt from GST only if the following conditions are satisfied.
- Entities are registered under Section 12AA of the Income Tax act and
- Services or activities provided by the charitable entity are listed in the notification. (Notification no.12/2017-Central Tax (rate) dated 28th June 2017)
There could be many services provided by charitable and religious trusts which are not covered by the definition of charitable activities as given in the notification and such services would attract the GST.
# Exempted Services or activities provided by the charitable entity are listed in the notification. (Notification no.12/2017-Central Tax (rate) dated 28th June 2017)
1) Conduct of any religious ceremony.
2) Renting of precincts of a religious place meant for the public, owned or managed by an entity or religious trust under section 12AA of income tax act 1961.
Provided that nothing contained in entry no 2. Of this exemption shall apply to;
- Renting of rooms where charges are 1000 or more per day.
- Renting of premises, community halls, kalyanmandapam or open are and charges are 10,000 rupees or more
- Renting of shops or other spaces for business or commerce where charges are 10,000 or more per month.
3) Services by way of training or coaching in recreational activities relating to:
- Art or culture, or
- Sports by charitable entities registered under section 12AA of the Income Tax Act.
(Sports such as dance, music, painting, drama etc.)
4) Services by and to educational institute (including educational institute run by charitable trusts )
5) Any services received by charitable trusts registered under section 12AA of income tax act from the provider of services located outside India, for purpose of providing charitable activities (notification No. 9/2017- Integrated Tax (Rate) dated 28.06.2017) and trust is not liable to pay GST on import of such services under RCM. However, this exemption shall not apply to Online information database retrieval services (OIDAR).
6) Arranging Yatras to a different place by a charitable trust.
Only such services of religious pilgrimage as are provided by Kumaon Mandal Vikas Nigam Limited or Haj Committee of India or state Huj Committee constituted under the Haj Committee Act, 2002 are exempt from GST ( Entry No 60 of Notification No. 12/2017- Central tax dated 28th June 2017)
7) GST on running public libraries by a charitable trust ( Entry no. 50 of notification No. 12/2017- Central tax rate dated 28th June .2017)
8) GST on Hospital Managed by charitable trusts ( Entry no .74 of notification No.12/2017- Central tax rate dated 28th June .2017)