Exemption Series - 1
Charitable & Religious Trusts are those institutions which work with the objective of
providing Social benefits to all or some groups of the society without having any profit
earning motive. There is no definition under GST Act which describes the meaning of
these Trusts. However charitable & religious activities are defined in Notification No.
12/2017 – Central Tax (Rates).
Charitable activities” means activities relating to –
Public health by way of,-
A. Care or counselling of :-
Terminally ill persons or persons with severe physical or mental disability;
Persons afflicted with HIV or AIDS;
Persons addicted to a dependence-forming substance such as narcotics drugs or
alcohol; or
B. Public awareness of preventive health, family planning or prevention of HIV infection;
Advancement of religion, spirituality or yoga;
Advancement of educational programmes or skill development relating to,-
Abandoned, orphaned or homeless children;
Physically or mentally abused and traumatized persons;
Prisoners; or
Persons over the age of 65 years residing in a rural area;
Preservation of environment including watershed, forests and wildlife;
So, only the activities which are specified in the meaning as above are considered as
Charitable Activities. Therefore, exemptions are provided by way of following entries under
Notification No. 12/2017 Central Tax (Rate).
Sr. No.
Chapter,
Section,
Heading or
Service Code
Description of Service
1 Chapter 99 Services by an entity registered under section 12AA of the Income-tax
Act, 1961 (43 of 1961) by way of charitable activities.
13
Heading
9963 or
Heading
9972 or
Heading
9995 or
any other
Heading of
Section 9
Service by a person by way of:-
(a) Conduct of any religious ceremony;
(b) Renting of precincts of a religious place meant for general
public, owned or managed by an entity registered as a
charitable or religious trust under section 12AA of the
Income-tax Act, 1961.
Provided that nothing contained in entry (b) of this
exemption shall apply to,—
- Renting of rooms where charges are > 1000 Rupee. /
Day
- Renting of premises, community halls where charges
are > 10000 Rupee. / Day
- Renting of shops or other spaces for business where
charges are > 10000 Rupee / Month
60 Heading
9991
Services by a specified organization in respect of a religious
pilgrimage facilitated by the Government of India, under bilateral
arrangement.
Ques. 1 Whether Exemption will available to all trust who are doing business without any
profit motive?
Ans. Exemption to Charitable & Religious Trusts is available only if below conditions are
satisfied.
A. Trust is registered under Section 12AA of Income Tax Act, 1961, and
B. Services provided by Trusts are falling within the meaning charitable activities.
