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gst input credit on donations

sumeetjeswani (student) (73 Points)

07 April 2018

Can we take Gst Input Credit on Donations?

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3 Replies

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 07 April 2018

The principle laid down in said circular is that the ‘Donation’ cannot be treated as ‘Consideration’ as there is no relationship between donor and the beneficiary other than universal humanitarian interest. In such a situation, service tax is not leviable, since the donation or grant-in-aid is not linked to specific beneficiary. Thus, even though donor specifies the scheme or program in which donated amount should be utilised, such amount should not taxable under GST so far beneficiaries of said scheme are specifically identified at the time of making donation.

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Akash Verma (188 Points)
Replied 07 April 2018

Donation is not a supply since there is no consideration.
Hence GST cannot be levied.
Consequently, there is no question of claiming input credit.

sumeetjeswani (student) (73 Points)
Replied 07 April 2018

suppose a Ngo is buying tablets and donating it, the vendor is billing and charging GST and Ngo is charging us same. can we take credit if the bill is in our name?