In re Ecosan Services Foundation (GST AAR Maharastra)
Question : Services provided to (NGO) Non-profit organization registered as Trust having registration U/s. 12AA of Income Tax Act, amounts to provision of service and any grant/ Donation received towards performing specific service towards preservation of environment as specified in notification no 12/2017, Whether amounts to provision of service and liable for GST ?
Answer: – As per above discussion, the services provided by the applicant to various entities inducing NGO amounts to provision of service. Further, grants/Donations received towards provision of services would be considered as received towards activities relating to preservation of environment as specified in definition at 2 (r) of Notification No. 12/2017- Central Tax (Rate) dated 28/06/2017 and therefore such grants/donations are covered by exemption Notification entry at Sr. No.l of the said notification
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING MAHARASTRA
The present application has been filed under section 97 of the Central Goods and services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by M/s. ECOSAN SERVICES FOUNDATION, the applicant, seeking an advance ruling in respect of the following question:
Question :- Services provided to (NGO) Non-profit organization registered as Trust having registration U/s. 12AA of Income Tax Act, amounts to provision of service and any grant/ Donation received towards performing specific service towards preservation of environment as specified in notification no 12/2017, Whether amounts to provision of service and liable for GST ?
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the “GST Act”.
02. FACTS AND CONTENTION – AS PER THE APPLICANT
The submissions, as reproduced verbatim, could be seen thus-
1. STATEMENT OF FACTS HAVING BEARING ON THE QUESTIONS ON WHICH ADVANCE RULING IS REQUIRED.
A) ECOSAN SERVICE FOUNDATION Section 8 NON-PROFIT Organization (companies Act, 2013) Established in 2006 with the support of the Deutsche Gesellschaft Fur Internationale Zusammenarbeit (GIZ) and in association with the Innovative Ecological Sanitation Network of India (IESNI).
Our vision is to promote ecological sanitation and sustainable sanitation practices along with efficient water & waste water management practices in India. With cross cutting knowledge and experience, we work closely with the public and private sectors. Since the inception of this company, we have gained extensive experience in capacity development, awareness raising, research and development projects and consulting in the sustainable sanitation field in South Asia.
ECOSAN SERVICE FOUNDATION (ESF) IS empanelled as Key Resource Centers (KRC) under Ministry of Drinking Water and sanitation to conduct training workshops facilitate knowledge sharing and learning, etc., Under the Swachh Bharat Mission (Gramin) across the country. ECOSAN SERVICE FOUDNATION (ESF) is a state government recognized Key resource Centre (KRC).
B) Applicant is registered as per Provisions of GST Law.
C) The Applicant seeks the Ruling of the Advance ruling Authority on the following transactions.
1) The Ecosan Service Foundation (ESF) is engaged in providing services relating to Sanitation, since its inceptions. Following are the amounts received towards Grants / Donations from Various companies, details are as under.
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