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TMI BlogGST on Charitable and Religious TrustsX X X X Extracts X X X X X X X X Extracts X X X X ..... defined in the notification as under: charitable activities means activities relating to: (i) public health by way of: (A) care or counseling of (I) terminally ill persons or persons with severe physical or mental disability; (II) persons afflicted with HIV or AIDS; (III) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or (B) public awareness of preventive health, family planning or prevention of HIV infection; (ii) advancement of religion, spirituality or yoga; (iii) advancement of educational programmes or skill development relating to: (A) abandoned, orphaned or homeless children; (B) physically or mentally abused and traumatized persons; (C) prisoners; or (D) persons over the age of 65 years residing in a rural area; (iv) preservation of environment including watershed, forests and wildlife. Thus, services supplied by charitable trusts are exempt from GST only if following conditions are satisfied. (a) Entities are registered under Section 12AA of the Income-tax Act, and (b) Services or activities by the entity are by way of charitable activities as listed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g not exceeding the prescribed ceilings as given above. The term religious place , as defined in clause (zy) of the said notification, means a place which is primarily meant for conduct of prayers or worship pertaining to religion, meditation, or spirituality . It has been clarified vide Circular No. 200/10/2016-Service Tax dated 6th September, 2016 issued in the context of identical exemption given from service tax that field formations may not take a restricted view of the word precincts and consider all immovable property of the religious place located within the outer boundary walls of the complex (of buildings and facilities) in which the religious place is located, as being located in the precincts of the religious place. The immovable property located in the immediate vicinity and surrounding of the religious place and owned by the religious place or under the same management as the religious place, may be considered as being located in the precincts of the religious place and extended the benefit of exemption under Notification No. 25/2012-Service Tax, Sl. No. 5(a) dated 20.6.2012. Exemption given under GST is identical to the exemption that was given under servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iding charitable activities are exempt from GST entry no. 10 of Notification no.9/2017-Integrated Tax (Rate) dated 28.06.2017 and the trust is not liable to pay GST on import of such services under reverse charge mechanism. However, this exemption shall not apply to online information and database access or retrieval (OIDAR) services received by charitable trusts. OIDAR services have been defined in section 2(17) of the IGST Act, 2017 and include services such as advertising on the internet, provision of e-books, music, movie, software, online gaming etc. However, compliance is not on the charitable trust under reverse charge. Services by and to Educational Institutions (including institutions run by charitable trusts) : Activities of a school, college or an institution run by a trust which do not come within the ambit of charitable activities as defined in the notification, will not be exempt under S. No. 1 of notification No. 12/2017-Central Tax (Rate). However, such activities may be exempt under S. No. 66 of the said notification provided the school, college or institution is an educational institution as defined in clause (y) of paragraph 2 (Definitions) of the notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities will be taxable. Similarly, activities such as holding of fitness camps or classes such as those in aerobics, dance, music etc. will be taxable. GST on arranging Yatras to different places by charitable trusts : Only such services of religious pilgrimage as are provided by Kumaon Mandal Vikas Nigam Ltd. or Haj Committee of India or a State Haj Committee constituted under the Haj Committee Act, 2002 in respect of a religious pilgrimage facilitated by the the Government of India, under bilateral arrangement, are exempt from GST. [Entry 60 of Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017]. Religious Yatras or pilgrimage organised by any charitable or religious trust are not exempt. GST on running of public libraries by charitable trusts :No GST is applicable on activities of public libraries (including those run by charitable or religious trusts) by way of lending of books, other publications or knowledge-enhancing content/material. This activity has been specifically exempted by entry No. 50 of Notification No. 12/2017- Central Tax Rate dated 28th June, 2017. GST on hospital managed by charitable trusts : Entry 74 of Notification No. 12/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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