Gst exemption for charitable institutions

There are certain criteria for a charitable trust or an NGO to be exempted from the Goods and Services Tax. The charitable trust or NGO must be registered under Section 12AA of the Income Tax Act, and the services provided by the charitable trust or the NGO must be for a charitable cause.

What is a charitable activity under GST?

The Goods and Services Act also specifies the criteria to be called a charitable activity. They are:

 

Public health services, such as:

Counseling of terminally ill persons or counseling for physically disabled

Counseling for people affected with HIV or AIDS

Counseling for alcohol-dependent persons

 

Promoting of religion, spirituality, or yoga

Spreading public awareness on health, family planning

Promoting educational programs or skill development relating to:

 

Physically or mentally abused persons

Prisoners

Orphaned, homeless, or abandoned children

Rural area residents over the age of 65 

Charitable services to preserve the environment (watershed areas, forests, and wildlife)

If any charitable trust or an NGO does not meet at least two of the criteria, then GST will be applicable and the entity must register under GST.  

 

What about goods sold by a charitable trust?

Goods that are sold by a charitable trust is taxable. The charitable trust must pay the GST rate applicable while purchasing the supply.

Is GST applicable on training programs, camps, and events conducted by a charitable trust?

If a charitable trust is conducting training programs, yoga camps, or other programs that are not free for participants, it will be considered as a commercial activity and hence will be liable for GST. Even the donation received for such an activity will be liable for taxation under GST.

Services provided by way of training or coaching in recreational activities relating to arts and culture, or sports by a charitable entity will be exempt from GST.

Are the events organized by charitable trusts exempt from GST?

If trusts are running schools, colleges or any other educational institutions specifically for abandoned, orphans, homeless children, physically or mentally abused persons, prisoners or persons over age of 65 years or above residing in a rural area, such activities will be considered as charitable activities and income from such supplies will be wholly exempt

Its taxable because the fee is charged for yoga services.
GST is not applicable to donations made by a donor willingly to a registered charitable trust, but applicable to any donation received through a commercial trust event, where the entry or services are provided in exchange for a fee.

Thanks. Can u please tell me what does advancement of yoga mean and how it differs from normal yoga training