Home Case Index All Cases GST GST + AAR GST - 2019 (3) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 1121 - AAR - GSTLevy of GST - provision of service or not - activities and work related to sanitation - charitable activities or not - Services provided to (NGO) Non-profit organization registered as Trust having registration U/s. 12AA of Income Tax Act - grant/ Donation received towards performing specific service towards preservation of environment as specified in N/N. 12/2017 - Held that:- The notification benefit of ‘Nil’ rate is available to services by an entity registered under Sec.12 AA of Income Tax Act,1961 by way of charitable activities. Though the applicant is registered under Sec.12 AA of Income Tax Act, 1961, the notification benefit would be available only if the applicant’s activities fell within the scope of charitable activities as defined in the said Notification - The dictionary meaning of ‘preservation’ is to keep up; to maintain; to keep safe from injury. Thus preservation of environment would cover both protection of environment (keeping it safe from destruction ) and conservation of environment (optimal use of natural resources and allowing them to regenerate or sustainable consumption of natural resources i.e. meeting the needs of present generation without compromising the needs of the future generations (Brundtland Report)). It is a well known fact that flush toilets waste large quantities of water and that recycling of human excreta would reduces pollution of the environment. Therefore the applicant’s activities are covered by the activity specified under Para 2(r)(iv) of the Notification relating to preservation of environment. Applicant is also engaged precisely in activities relating to creation of awareness of sanitation which is an essential ingredient of preventive healthcare. Therefore the applicant’s activities are also covered by the activities specified under Para 2(r)(B) of the Notification, though the applicant himself has not raised any argument in this regard. Thus, these activities can be considered as charitable activities and within the scope of ‘Charitable activities’ as defined in 2 (r) of the exemption Notification No.12/2017-Central Tax (Rate) dated 28/06/2017 of the GST Act.
|