GST Applicability - Specific Donations, Goods and Services Tax - GST

[Ethirajan Parthasarathy]

A charitable organization (Sec 12AA registered) is engaged in Annadhanam.

It has extended facility of donor specifying a day of his choice (say birthday etc) on which annadhanam is done at old age home, orphan children home etc.

Will such donation received with specific instruction that Annadhanam be done on specific day suffers GST.

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

The donor give the donation for feeding inmates of old age home and orphan children. Since no consideration is charged on the old age home and orphan children home the food is supplied without consideration. since there is no consideration no gst is payable on the donation. However the person who supples the food on behaf of the donar will charge gst on the value of supply from the donar since the supplier supplies the foods on behaf of the donar as an agent of the donar.

[KASTURI SETHI]

Yes. I am also of the same view.

[Ganeshan Kalyani]

I too of the same view. Since, there is no consideration there is no GST.

[YAGAY andSUN]

In this matter two basis elements are missing i.e. Supply and Consideration as donations were for a noble cause, hence GST on donation will not be applicable, as rightly replied by experts.