gst input credit on donations

The principle laid down in said circular is that the ‘Donation’ cannot be treated as ‘Consideration’ as there is no relationship between donor and the beneficiary other than universal humanitarian interest. In such a situation, service tax is not leviable, since the donation or grant-in-aid is not linked to specific beneficiary. Thus, even though donor specifies the scheme or program in which donated amount should be utilised, such amount should not taxable under GST so far beneficiaries of said scheme are specifically identified at the time of making donation.

NO CREDIT