GST on amount received by NGO, Goods and Services Tax - GST

[Kaustubh Karandikar]

1)Is there exemption from GST for NGO/Public Charitable Trust (PCT)? 2) If no, will it be eligible for the 20-lakh base exemption? 3) Sponsorship received by NGO/PCT not subject to reverse charge if NGO/PCT is not a corporate/partnership firm? 4)Will NGO/PCT have to charge GST on sponsorship fees? 5)Grant received by NGO/PCT not subject to reverse charge since (i) no service (ii) in the nature of a donation? 7) No GST chargeable on grants received by NGO/PCT?

Posts / Replies

[KASTURI SETHI]

Dear Sir,

Query-wise reply is as under:-

1. Only charitable activities (specifically mentioned) are exempted from GST. Commercial activities by NGO/charitable trusts are not exempted.

2. Threshold exemption is available to NGO/PCT.

3. Yes. Sponsorship services provided to any body corporate or partnership firm fall under RCM and in all other cases, tax is to be paid by the supplier of service.

4. Yes.

5. Agreed

6.(7) Yes.

Also go through the following case laws :

2018 (16) G.S.T.L. 332 (A.A.R. - GST) = 2018 (9) TMI 235 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA IN RE : SHRIMAD RAJCHANDRA ADHYATMIK SATSANG SADHANA KENDRA

2019 (20) G.S.T.L. 779 (App. A.A.R. - GST) = 2019 (1) TMI 25 - APPELLATE AUTHORITY FOR ADVANCE RULING MAHARASHTRA IN RE : SHRIMAD RAJCHANDRA ADHYATMIK SATSANG SADHANA KENDRA

Also see Board's Circular No.66/40/2018-GST dated 26.9.18 and Board's Flyer No.39 dated 1.1.18