GST on Charitable And Religious Trusts

The GST Act exempts certain activities conducted by the Charitable Trust.

Charitable Trust under GST Act

An entity registered under Section 12 AA of the Income Tax Act 1961,all defined charitable activities are exempted under the GST Act.

Charitable Activities under GST Act

Notification No.12/2017-Central Tax (Rate) dated 28th June 2017 exempts services of the Charitable Trusts.

Charitable Services means activities relating to:

(i) public health by way of:

(A) care or counseling of

(I) terminally ill persons or persons with severe physical or mental disability;
(II) persons afflicted with HIV or AIDS;
(III) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or

(B) public awareness of preventive health, family planning or prevention of HIV infection;

(ii) advancement of religion, spirituality or yoga;

(iii) advancement of educational programmes or skill development relating to:
abandoned, orphaned or homeless children; physically or mentally abused and traumatized persons; prisoners; or persons over the age of 65 years residing in a rural area;

(iv) preservation of the environment including watershed, forests and wildlife.

Activities that are exempt from Charitable Trusts

• Management of educational activities by Charitable Trust: Any educational institution run by Charitable trusts including skill development for abandoned ,orphans, homeless children, physically or mentally abused persons, prisoners and persons aged over 65 years is exempted from GST.
• Import of Services: A Charitable institute registered under section 12AA of the Income Tax Act which receives any services provided by a service vendor outside India for the purpose of charitable activities are exempted from GST. However, any OIDAR (Online Information Database Retrieval) services received by the Charitable trust from a service provider outside India shall not be exempted.
• Any camp Conducted by Charitable Institute: Any Camp conducted by charitable trusts for the advancement of religion or spirituality, yoga or meditation shall be exempted. If the primary purpose of the camp is other than the above mentioned activities then the trust is liable for GST.
• Charitable Trust arranging Yatras to different places: Services of religious pilgrimage as provided by Kumaon Mandal Vikas Nigam Ltd, Haj committee of India , State Haj committee under Haj Committee Act, 2002 in respect of religious pilgrimage facilitated by Government of India is
• Public Libraries run by Charitable Trusts: Activities of libraries like lending of books, knowledge enhancing material are specifically exempted from GST.
• Hospitals Managed by Charitable Trust: Health care services like diagnosis, treatment or care for illness, injury, deformity, abnormality or pregnancy including transportation of patients to and from clinical establishment is exempted from GST.
• Goods Supplied by Charitable Trust: Any goods supplied by Charitable trust is liable for GST.
• Renting of premises by Charitable Trust: When a charitable trust rents out premises for religious activities the GST shall be exempt if :
• Rent of the rooms are charged lesser than Rs.1,000 a day.
• Kalyanamantapanam or any open area charged at a price lesser than Rs 10,000.
• Rentals of premises for any business establishment charging rent less than Rs.10,000 per month.

Services and Goods provided to Charitable Trust

• Services Provided to Charitable Trust: Any services provided to Charitable or Religious Trusts are liable for GST. Unless specially exempted.
• Supply of goods: Any goods supplied to a charitable trust is liable for GST.

FAQs

1. Is GST leviable on renting of parking space of the premises of the Charitable Trust?

Yes, GST is levied on renting of premises other than for conducting religious activities.

2. What do OIDAR Services Include?

OIDAR services include advertising on the internet, e-books, music, movies, software , and online gaming .

3. Is GST leviable on fitness camps arranged by Charitable trust?

Yes, GST is levied on such camps, except camps with a purpose of religion, yoga and meditation arranged by trust are exempted.

4. Is GST exempt for Residential programs where fee cost includes boarding and lodging of participants for yoga camps conducted by a Charitable trust?

Yes GST is exempted for the same.

5. Is GST exempted for services by any charitable trusts organizing religious Yatras?

No, not all charitable trusts are exempt. Charitable Trusts Kumaon Mandal Vikas Nigam Ltd, Haj committee of India, State Haj committee under Haj Committee Act, 2002 are exempted for services organizing religious Yatras.