Aroh Foundation Vs Additional Commissioner, Adjudication, Directorate General of GST Intelligence (DGGSTI) & Others (Delhi High Court)
In the case of Aroh Foundation vs. Additional Commissioner, the Delhi High Court examined whether a charitable institution’s activities are taxable under the Central Goods and Services Tax (CGST) Act, 2017. The petitioner, a registered charity under Section 12AA of the Income Tax Act, challenged an order that assessed its income as taxable under CGST. The Court highlighted the statutory provisions of Sections 7 and 9 of the CGST Act, which define “supply” as activities conducted in the course of or furtherance of business for consideration. The Court observed that charitable institutions’ activities, prima facie, do not align with these criteria, as they are not conducted as part of a business venture.
The Court placed the impugned order in abeyance, indicating that the activities of the petitioner might not qualify as “supply” under the CGST Act. The case was adjourned for further hearings, with the next date set for January 8, 2025. This judgment underscores the distinction between charitable and business activities in tax assessments, providing interim relief to the petitioner while the matter remains under judicial review.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
