Case Law Details
In re Polaris Foundation (GST AAR Tamilnadu)
Introduction: The case of Polaris Foundation throws light on a significant GST exemption provided in relation to public awareness services for COVID prevention, especially when executed in collaboration with UNICEF.
Polaris Foundation’s Stand: Polaris Foundation, a charitable trust registered under Section 12AA of the Income Tax Act, 1961, actively works towards multiple causes including medical relief for the underprivileged, educational aid, and more. Their recent association with UNICEF has been directed towards ‘Strengthening COVID-19 and Seasonal Hazard Preparedness’ at the Gram Panchayat level. The trust’s primary goal in this partnership is to foster public awareness on COVID-appropriate behavior and preventive measures.
Interpretation of the Law: Diving into the GST framework, the term ‘Supply’ as defined under Section 7(1) of the CGST Act, 2017 encompasses the activities undertaken by the foundation. However, the foundation argues that their supply services fit under the umbrella of exemptions provided in Notification No. 12/2017-Central Tax.
Views of State and Centre Authorities: The state authority emphasized that each charitable activity must be considered individually for its taxability. Therefore, a broad exemption from GST cannot be claimed solely based on the charitable nature of the trust. On the other hand, the Centre authority outlined that only certain specific activities of the foundation, specifically those relating to public health awareness, are exempt from GST, provided they align with Notification No. 12/2017-Central Tax.
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