GST is applicable for all types of goods and services in India, unless exempt or NIL rated by the GST Council. Thus, contrary to popular beliefs, GST could be applicable for some of the services and goods supplied by a Charitable Trust or NGO. In this article, we look at the provisions of GST relating to charitable trusts and NGOs in India. Criteria for Charitable Trust to Be Exempt from GST To be exempt from GST, a charitable trust or NGO must satisfy the following two criteria: The entity must be registered under Section 12AA of the Income Tax Act . The services provided by the entity must be a charitable activity. Under the GST Act, not all services provided by a Trust registered under Section 12AA would be termed as a charitable activity. Only the following activities are termed as charitable activity and exempt from GST: Services relating to public health like: Care or counseling of terminally ill persons or persons with severe physical or mental d...
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