GST registration not required by Trust if engaged in charitable activities

In re Jayshankar Gramin Va Adivasi Vikas Sanstha (GST AAR Maharashtra)

Question 1:- Whether applicant is required to obtain registration under the Maharashtra Goods and Service Tax Act, 2017?

From a perusal of the submissions made by the applicant it is seen that the main thrust of its argument is that the activity of supply by the applicant trust are fully exempted from levy of tax under the provisions of Sr.No. 1 of Notification No. 12/2017 C.T. (R) dated 28.06.2017 i.e. Services supplied by an entity registered under Section 12AA of the Income-Tax Act, 1961 (43 of 1961) by way of charitable activities. Since we have found that the activities undertaken by the ‘applicant do not conform strictly to the definition of a ‘charitable activity, the applicant shall obtain registration under GST Act.’

Question 2:- If answer to above question is affirmative, whether the applicant is liable to pay GST on the amounts received in the form of Donation / Grants from various entities including Central Government and State Government.

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