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GST IN KIND QUERY

Pooja Jain (CA Job) (21 Points)

01 July 2020

I am working in an NGO registered under 10(23C) of IT Act and also registered under 80G. I will illustrate the case as follow:-

1) One of our donors will be donating cement bags to us without any consideration. Wanted to check if there will be any GST to be paid from our side on this transaction.

2) We will be consuming part of the donated cement bags for our own project For the construction we have an agreement with the builder. whether we are able to desscope the agreement with the builder for donated cement bags.

3) We are planning to give the leftover cement bags to the builder for his other projects. Will Gst be applicable on the left over bags ? How can we show this transaction in books?

Please advice

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1 Replies

sunil (accountant) (141 Points)
Replied 02 July 2020

1)donation recieving is not supply
subject to defination of consideration
but if doner is giving you cement out of his stock lying in his balance sheet and he has taken itc of same than it is supply for him and he will pay gst to govt on transaction value
so it is not your lib to pay Gst

2) yes you can use cement for your own construction project

3) leftover cement to builder will be treated as supply and will attract gst

entries
when donation recieved
1. building material a/c Dr {asset}
To doner a/c{ supplier)
2. Doner a/c Dr
To donation a/c{ income/receipt}

when cement used for construction
1. Building a/c Dr {fixed assets}
To building material a/c

when left over cement given to builder
1. Builder a/c Dr {creditor}
To building material a/c
To cgst output a/c
To sgst/utgst output a/c
or
To igst output a/c

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