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GST Applicability - Specific Donations

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..... GST Applicability - Specific Donations
Query (Issue) Started By: - Ethirajan Parthasarathy Dated:- 18-2-2021 Last Reply Date:- 12-6-2021 Goods and Services Tax - GST
Got 4 Replies
GST
A charitable organization (Sec 12AA registered) is engaged in Annadhanam. It has extended facility of donor specifying a day of his choice (say birthday etc) on which annadhanam is done at old age home, .....

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..... orphan children home etc. Will such donation received with specific instruction that Annadhanam be done on specific day suffers GST. Reply By Rajagopalan Ranganathan: The Reply: Sir, The donor give the donation for feeding inmates of old age home and orphan children. Since no consideration is charged on the old age home and orphan children home the food is supplied without consideration. sinc .....

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..... e there is no consideration no gst is payable on the donation. However the person who supples the food on behaf of the donar will charge gst on the value of supply from the donar since the supplier supplies the foods on behaf of the donar as an agent of the donar. Reply By KASTURI SETHI: The Reply: Yes. I am also of the same view. Reply By Ganeshan Kalyani: The Reply: I too of the same view. .....

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..... Since, there is no consideration there is no GST. Reply By YAGAY andSUN: The Reply: In this matter two basis elements are missing i.e. Supply and Consideration as donations were for a noble cause, hence GST on donation will not be applicable, as rightly replied by experts.
Discussion Forum - Knowledge Sharing .....

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