Page 46 - CA Final GST

Badlani Classes

(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 persons;
(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.[Para 2(r) of
Notification No. 12/2017-CT (Rate)]
Other Aspects:
(i) Advancement of any other object of general public utility – Not charitable
purpose- In case if any charitable trust is carrying out any activities relating to
advancement of any other object of general public utility the same shall not be exempt
from GST. However, the trust can avail threshold exemption as available to all other
taxable services upto `20 lakh. (`10 lakhs in Special category States excluding Jammu
and Kashmir)
(ii) Import of services by Charitable Entity – Exempt Services received from a
provider of service located in a non-taxable territory by an entity registered under
Section 12AA of the Income-tax Act, 1961 for the purposes of providing charitable
activities are exempt. However, exemption shall not apply to OIDAR services and
import sea freight.
Que. Is hostel accommodation provided by Trusts to students covered within the definition of
Charitable Activities and thus, exempt.
Ans. Hostel accommodation services do not fall within the ambit of charitable activities as
defined in Para 2® of Notification No. 12/2017-CT (Rate).
However, services by a hotel, inn, guest house, club or campsite, by whatever name called,
for residential or lodging purposes, having declared tariff of a unit of accommodation
below `1,000 per day or equivalent are exempt.
Thus, accommodation service in hostels including by Trusts having declared tariff below
`1,000 per day is exempt.
Que. Services by Charitable Institutions: MTCT, an entity registered under Section 12AA of
the Income-tax Act, 1961, has furnished you the following details with respect to the
activities undertaken by it. You are required to compute its GST liability from the
information given below
Sl.No Particulars `
.
(1) Fees charged for yoga camp conducted by the trust 6,00,000
(2) Amount received for advancement of educational programmes 10,50,000
relating to abandoned, orphaned or homeless children
(3) Amount received for renting of commercial property owned by 35,00,000 Page45
the trust

Central Goods & Services Tax Act, 2017