Grants, non-philanthropic donations received by charitable trusts to attract 18% GST: AAR
The Hindu
In the case of donations, the AAR said if the purpose of the donation is philanthropic and leads to no commercial gains and is not an advertisement, then it would not attract GST.
Charitable trusts are liable to pay 18%GST on grants and non-philanthropic donations received by them, the Maharashtra AAR has ruled.
Jayshankar Gramin Va Adivasi Vikas Sanstha Sangamner, a Charitable trust registered under Maharashtra Public Charitable Trust Act 1950, had approached the Maharashtra Bench of the Authority for Advance Ruling (AAR), seeking clarity on whether it is liable to pay GST on the amounts received in the form of donations/grants from various entities, including the Central and State governments.
The trust is also registered under the I-T Act as a charitable trust.