GST on NPO, GST Rates on NPO
GST Rates on NPO / Charitable Institutions
Classification or HSN Codes for NPO / Charitable Inst.
NPO / Charitable Insti. under GST
Meaning of “person” [Sec 2(84)]…. “Person” includes,-
(f) an association of persons or a body of individuals, whether incorporated or not, in India or outside India; (g) any corporation established by or under any Central Act, State Act or Provincial Act or a Govt company as defined in sec 2(45) of the Companies Act, 2013; (i) a co-operative society registered under any law relating to co-operative societies; (l) society as defined under the Societies Registration Act, (m) trust; (n) every artificial juridical person, not falling within any of the above;
Meaning of “Business” [Sec 2(17)]…. “Business” includes,-
(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members; (f) admission, for a consideration, of persons to any premises;
Supply of goods by any unincorporated association to its member [Clause 7 of Schedule II of the GST Act] Following shall be treated as supply of goods, namely:—
“Supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration.”
Meaning of “charitable activities” [Sec 2(r) of Notification]
“Charitable activities” means activities relating to – [Definition is same as was in Service Tax – 2(k)] Meaning of “religious place” [Sec 2(zy) of Notification] “Religious place” means a place which is primarily meant for conduct of prayers or worship pertaining to a religion, meditation, or spirituality. [Definition is same as was in Service Tax – 2(zb)]
Meaning of “trade union” [Sec 2(zzn) of Notification]
“Trade union” has the same meaning as assigned to it in clause (h) of section 2 of the Trade Unions Act, 1926. [Definition is same as was in Service Tax – 2(zj)] Meaning of “general public” [Sec 2(zc) of Notification] “General public” means the body of people at large sufficiently defined by some common quality of public or impersonal nature; [Definition is same as was in Service Tax – 2(q)]
Charitable Institutions under GST
Religious Institutions under GST
Associations under GST
NPO/ Institutions – Issues under GST
Charitable institutions and NPO having exempt as well as taxable income Meaning of aggregate turnover – Taxable + Exempt supplies Selling of space for advertisement in print media was exempt under service tax but now it is taxable @ 5% under GST. Thus, all NGOs publishing souvenirs, receiving advertisements for souvenirs would be a taxable supply. Publishing of books – Royalty – Liable for reverse charge on royalty paid to the authors Increased GST – If used in exempt supplies – No ITC – A Cost Claiming of ITC where engaged in taxable as well as exempt supplies – Calculations
Recommended Articles
GST Overview GST Rates What is GST GST Forms GST Downloads Dual GST India GST Invoice Format GST Registration Rules of GST GST Login GST Returns
