The Goods and Services Tax (GST), as we know, is an indirect tax levied both by the Central and State Governments. It is applicable for any activity of “sale” or “transfer” of a “taxable” supply of goods or services for a “consideration” in the course of “furthering one’s business.” It may sound that GST is applicable only to the business entities and not to the Charitable Trusts, but in reality it is not so. To understand this, we need to understand what each of the above terms means. By “sale” or “transfer” we mean not only the actual selling of any concrete object (goods) or service for a price (e.g., selling religious articles, books, milk from the farm, computer maintenance service, security service, etc.,) but also giving a building or ground or land or space on rent (e.g., giving a hall or playground or hoarding space on rent, giving a plot of land for lease rent, etc.). By “taxable” we mean all those goods and services which are brought under the category of taxable items.
Note that there are quite many items that are not brought under GST. They are tax-free. At the same time, there are quite many items which are taxable under GST at the rate fixed by the Government as 6%, 12%, 18% or 28%. By “consideration” we mean any benefit given against any payment (e.g., an advertised sponsorship for an event). Here, the donor or sponsor gets the benefit of his name being advertised.
To read the entire article Subscribe
Fr Alex Gnanapragasam SJ
