GST Applicability

177 views 6 replies

Samrat Karar

111 Points Joined October 2017

We are registered society under Societies Registration Act and we have also 12AA registration and 80G registration. We are running a coaching centre for preparation of Govt. service job and from that we receive above 20 lakh. We also receive some donation from various sources. We spent all money from this sources to a school for financial backward children organise by us. We also provide them food and dress, study materials. Now my question is that should we take GST registration or not ?

Please suggest ? We need expert advice.

Replies (6)

Ruchika Somani

Coaching and Practice in Tax Audit Law

4429 Points Joined June 2018

If a charitable trust is conducting training programs, yoga camps, or other programs that are not free for participants, it will be considered as a commercial activity and hence will be liable for GST. Even the donation received for such an activity will be liable for taxation under GST.

Services provided by way of training or coaching in recreational activities relating to arts and culture, or sports by a charitable entity will be exempt from GST.

You should take GST registration.

Mahesh Paryani

Chartered Accountant

365 Points Joined June 2007

For answering this, we require more facts. Assuming that the activities what you are doing are as per the defination of charatable activity as per the defination as mentioned in Income Tax Act. As my friend Ruchika Somani has explained your activity of coaching class seems to be commercial activity on pracitical grounds and as per the information which you have given. however donation which you have received cannot be termed as commercial activity. since the turnover / receipt is above 20 Lakh you would require to register under GST act

Ruchika Somani

Coaching and Practice in Tax Audit Law

4429 Points Joined June 2018

Originally posted by : Mahesh Paryani
	For answering this, we require more facts. Assuming that the activities what you are doing are as per the defination of charatable activity as per the defination as mentioned in Income Tax Act. As my friend Ruchika Somani has explained your activity of coaching class seems to be commercial activity on pracitical grounds and as per the information which you have given. however donation which you have received cannot be termed as commercial activity. since the turnover / receipt is above 20 Lakh you would require to register under GST act

Donation received is termed as income if received for above mentioned commercial purpose

Samrat Karar

111 Points Joined October 2017

Respected Sir and Madam,
We use donation for charitable purpose. But here is a fact that should be keep in mind for taking decision that our school is established as different name from our society and our coaching centre also run in different name but in our balance sheet we shows both transaction and we prepare a consolidated Balance sheet and Income Expenditure and mention both unit name under society name.