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PRIVATE CHARITABLE TRUST, Goods and Services Tax - GST

Issue Id: - 119137
Dated: 3-6-2024
By:- Sanjeev Agrawal

PRIVATE CHARITABLE TRUST


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Dear All Learned Members,
I wanted to know the complete tax mechanism in gst in case where government grants are received by private charitable trust for cultural event either under reverse charge or forward charge

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Showing Replies 1 to 5 of 5 Records

Page: 1


1 Dated: 5-6-2024
By:- KASTURI SETHI

Dear Querist,

Can you elaborate your query ? Correct and concrete reply is not possible without full facts and circumstances. 


2 Dated: 5-6-2024
By:- Sanjeev Agrawal

Sir,

Actually the assessee trust is private charitable AOP trust for last 41 years. Its main activity has been to conduct yearly exhibitions in which it gives various shopkeepers and like businessmen shops on rent for a temporary period during which the exhibition is on. It also conducts cultural and entertainment prgrammes such as Kavi Sammelan and Bollywood Night in which various Artists perform and thereby charge their fees from the trust. Last year the trust had called with the help of District Administration famous Bollywood playback singer and internationally acclaimed poets for entertainment programmes. For paying them they have received government grant from the State Government. Now the issue is whether this grant is taxable under GST either in the hands of the government under reverse charge or in the hands of trust under forward charge in the GST law.

Thanks


3 Dated: 5-6-2024
By:- KASTURI SETHI

(i) There is no difference between the terms, 'grant-in-aid' and 'subsidy'. In this context, see Section 15 (2) (e) of CGST Act, 2017. Subsidies provided by Central Govt. and State Govts are excluded from the value of supply. Thus the grants (subsidies) are not subject to tax as there is no consideration.

(ii) However, there should be no commercial gain. If the charitable trust takes any commercial gain from that subsidy (grant), then that subsidy will be subject to tax.


4 Dated: 6-6-2024
By:- KASTURI SETHI

In order to understand the concept of subsidy/grant and taxability, go through the following decision :-


5 Dated: 13-6-2024
By:- Shilpi Jain

If it is an unconditional grant then possibility to state that no GST liability.

Need to know if there are any conditions and terms associated with the grants.


Page: 1

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