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The GST Act exempts certain activities conducted by the Charitable Trust. Charitable Trust under GST Act An entity registered under Section 12 AA of the Income Tax Act 1961,all defined charitable activities are exempted under the GST Act. Charitable Activities under GST Act Notification No.12/2017-Central Tax (Rate) dated 28th June 2017 exempts services of the Charitable Trusts. Charitable Services 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: abandoned, orphaned or homeless children; physically or mentally abused and traumatized persons; prisoners; or persons over the age of 65 years residing in a rural area; (iv) preservation of the environment including watershed, forests and wildlife. Activities that are exempt from Charitable Trusts Management of educational activities by Charitable Trust: Any educational institution run by Charitable trusts including skill development for abandoned ,orphans, homeless children, physically or mentally abused persons, prisoners and persons aged over 65 years is exempted from GST. Import of Services: A Charitable institute registered under section 12AA of the Income Tax Act which receives any services provided by a service vendor outside India for the purpose of charitable activities are exempted from GST. However, any OIDAR (Online Information Database Retrieval) services received by the Charitable trust from a service provider outside India shall not be exempted. Any camp Conducted by Charitable Institute: Any Camp conducted by charitable trusts for the advancement of religion or spirituality, yoga or meditation shall be exempted. If the primary purpose of the camp is other than the above mentioned activities then the trust is liable for GST. Charitable Trust arranging Yatras to different places: Services of religious pilgrimage as provided by Kumaon Mandal Vikas Nigam Ltd, Haj committee of India , State Haj committee under Haj Committee Act, 2002 in respect Just download and post Since We Are Keeping Track of Due Dates and Changes in It, You Can Relax PracticeGuru Branding Sign Up of religious pilgrimage facilitated by Government of India is Public Libraries run by Charitable Trusts: Activities of libraries like lending of books, knowledge enhancing material are specifically exempted from GST. Hospitals Managed by Charitable Trust: Health care services like diagnosis, treatment or care for illness, injury, deformity, abnormality or pregnancy including transportation of patients to and from clinical establishment is exempted from GST. Goods Supplied by Charitable Trust: Any goods supplied by Charitable trust is liable for GST. Renting of premises by Charitable Trust: When a charitable trust rents out premises for religious activities the GST shall be exempt if : Rent of the rooms are charged lesser than Rs.1,000 a day. Kalyanamantapanam or any open area charged at a price lesser than Rs 10,000. Rentals of premises for any business establishment charging rent less than Rs.10,000 per month. Services and Goods provided to Charitable Trust Services Provided to Charitable Trust: Any services provided to Charitable or Religious Trusts are liable for GST. Unless specially exempted. Supply of goods: Any goods supplied to a charitable trust is liable for GST. FAQs 1. Is GST leviable on renting of parking space of the premises of the Charitable Trust? Yes, GST is levied on renting of premises other than for conducting religious activities. 2. What do OIDAR Services Include? OIDAR services include advertising on the internet, e-books, music, movies, software , and online gaming . 3. Is GST leviable on fitness camps arranged by Charitable trust? Yes, GST is levied on such camps, except camps with a purpose of religion, yoga and meditation arranged by trust are exempted. 4. Is GST exempt for Residential programs where fee cost includes boarding and lodging of participants for yoga camps conducted by a Charitable trust? Yes GST is exempted for the same. 5. Is GST exempted for services by any charitable trusts organizing religious Yatras? No, not all charitable trusts are exempt. Charitable Trusts Kumaon Mandal Vikas Nigam Ltd, Haj committee of India, State Haj committee under Haj Committee Act, 2002 are exempted for services organizing religious Yatras.

You may wonder the impact of the recommendations of the GST Council meeting concluded on 29th and 30th June 2022. We bring a concise summary of changes pursuant to said meeting for better understanding – What became cheaper Ostomy Appliances Orthopaedic appliance, intraocular lens, artificial body parts, body implants Specified defence items Goods/passenger transport by Ropeway Renting of truck/goods carriage where cost of fuel is included What turned dearer Hotel Stay where room rent is below Rs 1,000 per day Hospital Room rent (excluding ICU) exceeding Rs 5,000 per day per patient charged by a hospital – 5% (no ITC) Renting of residential dwelling to business entities Services by RBI, IRDA, SEBI, FSSAI, GSTN specified food items, grains (prepackaged) and pre-packed, pre-labelled curd, lassi and butter milk E-Waste (electronic waste) Cheques, lose or in book form Printing, writing or drawing ink LED Lamps, lights and fixture Drawing and marking out instruments Solar Water Heater and system Tetra Pak Tar Important Changes or Clarifications Electric vehicles whether or not fitted with a battery pack, are eligible for the concessional GST rate of 5%. Sewage treated water is exempted from GST and is not the same as purified water provided in S. No. 99 of notification 2/2017-CT(Rate). Services associated with transit cargo both to and from Nepal and Bhutan are covered by exemption under entry 9B of notification No. 12/2017-CT(R) dated 28.06.2017 Activity of selling of space for advertisement in souvenirs published in the form of books is eligible for concessional GST at 5% Renting of vehicle with operator for transportation of goods on time basis is classifiable under Heading 9966 (rental services of transport vehicles with operators) and attracts GST at 18%. GST on such renting where cost of fuel is included in the consideration charged is being prescribed at 12%. Renting of motor vehicles for transport of passengers to a body corporate for a period (time) is taxable in the hands of body corporate under RCM (vehicle hire – Hourly/daily/monthly basis) Goods transport agency (GTA) is being given option to pay GST at 5% or 12% under forward charge; option to be exercised at the beginning of Financial Year. RCM option to continue (GTA can pay tax at 5% or 12% on forward charge method i.e. charge tax at 5% or 12% on their Invoice and recipients may avail ITC in both cases) Change in formula for calculation of refund under rule 89(5) to take into account utilization of ITC on account of inputs and input services for payment of output tax on inverted rated supplies in the same ratio in which ITC has been availed on inputs and input services during the said tax period. This would help those taxpayers who are availing ITC on input services also. Additional time for filing refund claim - Time period from 01.03.2020 to 28.02.2022 to be excluded from calculation of the limitation period for filing refund claim by an applicant under section 54 and 55 of CGST Act Form for giving back amount of refund claim wrongly granted - Re-credit of amount in electronic credit ledger to be provided in those cases where erroneous refund amount sanctioned to a taxpayer on account of accumulated ITC or on account of IGST paid on zero rated supply of goods or services, in contravention of rule 96(10) of the CGST Rules, is deposited by him along with interest and penalty, wherever applicable. A new FORM GST PMT- 03A is introduced for the same. Present exemption of IGST on import of goods under AA/EPCG/EOU scheme to be continued and E-wallet scheme not to be pursued further Clarification to be issued on mandatory furnishing of correct and proper information of inter-State supplies and amount of ineligible/blocked Input Tax Credit and reversal thereof in return in FORM GSTR-3B. Clarification on various issues relating to interpretation of section 17(5) of the CGST Act -Blocked/Ineligible ITC Clarification on the issue of perquisites provided by employer to the employees as per contractual agreement Clarification on utilization of the amounts available in the electronic credit ledger and the electronic cash ledger for payment of tax and other liabilities No requirement of reversal of input tax credit (Rule 43) for exempted supply of Duty Credit Scrips by the exporters UPI & IMPS to be provided as an additional mode for payment of Goods and Services Tax to taxpayers under Rule 87(3) of CGST Rules In respect of refunds pertaining to supplies to SEZ Developer/Unit, clarification to be inserted specifying that “specified officer” shall mean the “specified officer” or “authorized officer”, as defined under SEZ Rules, 2006 Supplies from Duty Free Shops (DFS) at international terminal to outgoing international passengers to be treated as exports by DFS and consequential refund benefit to be available to them on such supplies. Exemption from filing annual return in FORM GSTR-9/9A for FY 2021-22 to continue for taxpayers having AATO upto Rs. 2 crores Provision for automatic revocation of suspension of registration in cases where suspension of registration was done by the system, for continuous non-filing of specified number of returns, once all the pending returns are filed on the portal by the taxpayer Please note that the recommendations of the GST Council have been presented in this release containing major item of decisions in simple language for information of all stakeholders. The same would be given effect through relevant Circulars/ Notifications/ Law amendments which alone shall have the force of law.