TMI BlogGST on DonationX X X X Extracts X X X X X X X X Extracts X X X X ..... Suppose a company is receiving donations from its employees/staff in lieu of COVID-19 and these proceeds are utilized to provide food and other groceries to staff members of housekeeping or security. So will receipt of donation from employees attract any GST? - Reply By KASTURI SETHI - The Reply = The definition of 'goods' and 'services' specifically excludes money. As per S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 2 (52) of CGST Act goods means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply; As per Section 2(102 ) of CGST Act services means anything other than goods, money and securit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. Monetary donations without any favour for favour in return cannot be considered as supply of any goods or services. Hence out of definition of the scope of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pply. No GST is applicable on such monetary donation. - Reply By Rachit Agarwal - The Reply = Donation amount has been received for providing food and other groceries to staff members. Supply of food to security for which consideration has been received from employees. The same is taxable. However plea may be taken, the company is acting as pure agent on behalf of the employees. In this case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount received from employees to co-related with the exact amount utilized for the purpose of distribution. Surplus if any to be given back to employees and extra expenditure incurred to be received from employees. Exemption has been provided for the services provided by an entity registered u/s 12AA for charitable purpose and not any other entity. It is a settled law that exemption where h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been provided has to be strictly applied and followed and benefit of doubt if any will be in favour of revenue. - Reply By YAGAY andSUN - The Reply = For details you may refer following article on this matter. Donations given to combat COVID-19: GST perspective https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=9077 - Reply By Mahadev R - The Reply = I also agree ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with Kasthuri Sir. As there is no supply in return to the person who donates and it is also not clear who is the beneficiary, such donation cannot be treated as supply. - GST on Donation - Query Started By: - Navy G Dated:- 4-5-2020 Goods and Services Tax - GST - Got 4 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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