If an “ not for profit” entity registered under section 12AA of Income Tax Act 1961 supply goods , is it liable for GST ?
There is NIL GST on following :-
Services by an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) by way of charitable activities.
[ Entry No 1 of NOTIFICATION NO. 12/2017 – CENTRAL TAX (RATE) ]
“charitable activities” means activities relating to—
(i) public health by way of ,—
(A) care or counselling of
(I) terminally ill persons or persons with severe physical or mental disability;
(II) persons afflicted with HIV or AIDS;
(III) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or
(B) public awareness of preventive health, family planning or prevention of HIV infection;
(ii) advancement of religion, spirituality or yoga;
(iii) advancement of educational programmes or skill development relating to,—
(A) abandoned, orphaned or homeless children;
(B) physically or mentally abused and traumatized persons;
(C) prisoners; or
(D) persons over the age of 65 years residing in a rural area;
(iv) preservation of environment including watershed, forests and wildlife; [entry (r)]
This notification is related to exemption of only activities as services , and not of goods. Therefore trust or Institution even though registered under Section 12AA of income Tax Act , the supply of goods is taxable under GST
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