Charitable trust running medical store require to take GST registration irrespective of any pecuniary benefits

Last updated: 05 August 2021

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The Gujarat High Court has ruled that charitable trusts operating medical stores must obtain Goods and Services Tax (GST) registration. This applies even if medicines are sold at a lower rate and any surplus is used for charitable purposes. The court determined that selling medicines for consideration constitutes a business activity, regardless of pecuniary benefit, making GST registration mandatory under the CGST Act.

Court :
Gujarat HC

Brief :
The Hon’ble High Court of Gujarat in case of Nagri Eye Research Foundation v. Union of India [R/Special Civil Application No. 7822 of 2021, dated July 09, 2021] affirmed the decisions of the Hon’ble Gujarat Appellate Authority for Advance Ruling ('GAAAR') and the Hon’ble Gujarat Authority for Advance Ruling ('GAAR') holding sale of medicines at lower rate by the charitable trust is a taxable supply and Goods and Services Tax ('GST') registration is required for medical store run by such charitable trust.

Citation :
R/Special Civil Application No. 7822 of 2021, dated July 09, 2021

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1999

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3499

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4999

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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