GST on NGO, Charitable Religious Trust

Goods and Services Tax (GST) is a tax that was implemented in India on 1st July 2017, with the aim of replacing all the indirect taxes levied by the central and state governments. GST is applicable to all businesses, including non-governmental organizations (NGOs), charitable trusts, and religious trusts. This article will help you understand the GST implications on these organizations.

Definition of NGO, Charitable and Religious Trusts

An NGO, or non-governmental organization, is a not-for-profit organization that is independent of government and aims to promote social welfare or environmental concerns. Charitable trusts are trusts set up with the aim of providing charitable services to the public, while religious trusts are trusts set up for religious purposes.

Applicability of GST on NGO, Charitable Religious Trusts

NGOs, charitable trusts, and religious trusts are liable to pay GST if their annual turnover exceeds Rs. 20 lakh. However, if the organization is engaged in the supply of goods or services that are exempt from GST, then it is not required to register under GST.

GST Registration for NGOs, Charitable Religious Trusts

NGOs, charitable trusts, and religious trusts that are required to register under GST can do so by visiting the GST portal and following the registration process. The process is similar to that of any other business, and the organizations will be required to provide the necessary documents and information.

GST Rates for NGOs, Charitable Religious Trusts

The GST rates for NGOs, charitable trusts, and religious trusts are the same as for any other business. However, certain goods and services provided by these organizations may be exempt from GST. For example, services provided by an NGO for the advancement of religion, spirituality, or yoga are exempt from GST.

GST Input Tax Credit for NGOs, Charitable Religious Trusts

NGOs, charitable trusts, and religious trusts are eligible for GST input tax credit if they are registered under GST and are engaged in taxable supplies. However, if the organization is engaged in the supply of exempted goods or services, then it is not eligible for input tax credit.

Conclusion

NGOs, charitable trusts, and religious trusts are liable to pay GST if their annual turnover exceeds Rs. 20 lakh. The registration process is similar to that of any other business, and the organizations are eligible for GST input tax credit if they are engaged in taxable supplies. Certain goods and services provided by these organizations may be exempt from GST. It is important for these organizations to be aware of their GST liabilities and comply with the GST regulations.