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Voluntary contribution

afreen shaikh (170 Points)

22 August 2024

trust receiving voluntary contribution should be shown in Gst ??

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Rama chary Rachakonda (Master in Accounts & high court Advocate) (8621 Points)
Replied 22 August 2024

Yes, trusts receiving voluntary contributions should show them in their GST (Goods and Services Tax) returns. Here's why: 1. *GST Applicability*: Trusts are liable to register for GST if their annual turnover exceeds the threshold limit (currently ₹40 lakhs). 2. *Voluntary Contributions*: Voluntary contributions received by a trust are considered as "receipts" and may be subject to GST. 3. *Taxable Supply*: If the trust provides any services or goods in return for the voluntary contributions, it may be considered a taxable supply. 4. *Input Credit*: If the trust is registered under GST, it may be eligible to claim input credit on expenses incurred for providing such services or goods. 5. *GST Returns*: The trust must report the voluntary contributions and any GST liability in their GST returns (GSTR-1, GSTR-2, and GSTR-3). However, some exceptions and exemptions may apply, such as: - *Donations*: Donations received by a trust may be exempt from GST if they are not in excess of ₹1 lakh per donor per financial year. - *Charitable Activities*: Trusts engaged in charitable activities may be exempt from GST if they are registered under Section 12AA of the Income Tax Act. Consult a tax professional or chartered accountant to ensure compliance with GST regulations and to explore available exemptions.

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