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2019 (10) TMI 1137 - AAR - GSTExemption from GST - Charitable Activities or not - activities conducted by The Children of the World (India) Trust - receipt of the Adoption Fees paid under Regulation 46 of the Adoption Regulations, 2017 by the Prospective Adoptive Parents to the Trust - benefit of N/N. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended - HELD THAT:- On careful consideration of the definitions of ‘business’, ‘supply’ and ‘consideration’ contained in the CGST/SGST Act, we are of the opinion that the applicant, alongwith providing for advancement of educational programmes or skill development relating to abandoned, orphaned or homeless children, is also providing a ‘service of facilitating adoption’ and receiving consideration in the form of adoption fees for such facilitation services rendered by them. Therefore, their activities are covered within the scope of CGST/SGST Act. Whether the activities are covered under Exemption Notification 12/2017? - HELD THAT:- The applicant is a Specialized Adoption Agency as defined under the relevant laws and they have established a shelter, namely, “Vishwa Balak Kendra”, in their own building and provide shelter, food, clothing, healthcare, foster care and basic education to abandoned, orphaned or homeless children below 6 years of age till the time of adoption. Further, their activities which are in the nature of “Charitable Activities”, also consists of advancement of educational programmes or skill development relating to abandoned, orphaned or homeless children. Such activities are clearly covered under Sr. No. 1 of Notification No.12/2017-CT. (Rate) dated 28.06.2017 as amended from time to time and the applicant being an entity registered under Section 12AA of the IT Act, such activities carried out by the applicant are exempted by the said notification. Whether the receipt of the Adoption Fees paid to them by the Adopting parents, under Regulation 46 of the Adoption Regulations, 2017 is exempted under the Notification No-12/2017? - HELD THAT:- The applicant is a Charitable Trust registered as a “Specialized Adoption Agency” and is an institution recognized under Section 65 of the said Act, for housing orphans abandoned and surrendered children placed there by order of the Committee for the purpose of adoption. Every aspect of their activity is controlled and processed by CARA. The applicant does not and cannot take any remuneration, donation or any other amount other than the Adoptions fees paid to them. The Adoption Fees as on the date is affixed amount of ₹ 40,000/- for Intra Country and US$ 5,000/-, in case of Inter-Country Adoption. The activities, including the activity of facilitating the adoption of the children by the Adoptive parents, are in the nature of “Charitable Activities” , which also consists of advancement of educational programmes or skill development relating to abandoned, orphaned or homeless children. Such activities are clearly covered under Sr. No. 1 of Notification No. 12/2017- C.T. (Rate) dated 28.06.2017 and are exempted by the said notification - Therefore the receipt of the Adoption Fees by the applicant from the Prospective Adoptive Parents to the Trust is exempted from the levy of Goods and Services Tax.
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