Gst on services by vendor to a trust

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Vineet Jain

CFO

64 Points Joined July 2009

Whether GST will be charged by a vendor providing service to a Trust?
Which services are exempt on which GST will not be charged?
Whether GST will be charged by the vendor even if the trust is registered u/s 12A
Whether, and in which cases, the trust can can take refund of the GST paid to the vendors?

Replies (4)

1. Yes
2. Refer notification 12/2017- CGST Rate for exempted services
3. yes
4. Refund of gst input credit will be given in only two cases
a. export of service/goods
b. inverted tax scruture i.e., inputs are higher tax rate than outward sales

Vineet Jain

CFO

64 Points Joined July 2009

Hi Sujith thank you so much for your clarifications. One query... Isn't the GST charged by vendor an additional cost burden on the trust (even if it is 12A registered)? What will be the logic of government in making this law?

sujith kumar dasa

banglore

1496 Points Joined June 2012

Yes, GST charged by vendors is additional burden to the trust. Both government and trust have same moto to an extent providing service to the public in thier way, hence the govt feels collecting tax from trust would only mean instead of trust spending for people govt will spend.

Madhukar N Hiregange

Chartered Accountant

39039 Points Joined September 2008

Charitable activities also normally liable unless there is a clear exemption. There are 35 lakhs NGo but only 3-4 lakhs are genuine. GST mandates even govt to pay GST unless there is an exemption. Over period of time most exemptions would disappear and refund would be the route for providing support.