Are you worried about GST? Here are eleven clarifications to help you sleep better:
1. Goods and Services Tax (GST) applies only to business activities. It is not applicable where an NGO provides goods or services to others as part of its charitable activities or at nominal prices. It is also not applicable on grants received by NGOs.
2. Some NGOs also sell products or charge market-based fees for various services. If the NGO's total intrastate turnover from these taxable supplies is below Rs. 20 lakh p.a. (Rs. 10 lakh in hill states), then GST will not be applicable. Intrastate turnover means that these supplies are made to customers within the state.
3. If an NGO sells goods or provides services to anyone outside its state, the NGO must register for GST. In such cases, it does not matter that the total turnover is below the threshold of Rs. 10/ 20 lakh.
4. If you were already registered for VAT or service tax, then you must register for GST also.
5. If an NGO is registered under GST, it must pay GST on all taxable supplies made by it. Remember, this does not include grants for charitable activities.
6. If the NGO provides any goods or services (e.g. training or group formation) to a donor, then GST would be attracted.
7. If an NGO displays business logo etc. of a corporate donor in a prominent manner, then GST will be attracted.
8. If an NGO is registered for GST, then it must also pay reverse charge on services or goods received from unregistered vendors. This includes consultants, caterers, shopkeepers, etc. if they are not registered under GST. Casual supplies (<Rs. 5,000 in a day) from micro-vendors are excluded from reverse charge.
9. Reverse charge is deductible from GST payable as Input Tax Credit.
10. Education and medical services are not chargeable to GST. Export of services is charged at zero-rate, but is counted towards total turnover.
11. There is no general exemption from GST for supplies purchased by NGOs.
Please share this with your friends as an act of charity. No GST will be charged on such sharing.
1. Goods and Services Tax (GST) applies only to business activities. It is not applicable where an NGO provides goods or services to others as part of its charitable activities or at nominal prices. It is also not applicable on grants received by NGOs.
2. Some NGOs also sell products or charge market-based fees for various services. If the NGO's total intrastate turnover from these taxable supplies is below Rs. 20 lakh p.a. (Rs. 10 lakh in hill states), then GST will not be applicable. Intrastate turnover means that these supplies are made to customers within the state.
3. If an NGO sells goods or provides services to anyone outside its state, the NGO must register for GST. In such cases, it does not matter that the total turnover is below the threshold of Rs. 10/ 20 lakh.
4. If you were already registered for VAT or service tax, then you must register for GST also.
5. If an NGO is registered under GST, it must pay GST on all taxable supplies made by it. Remember, this does not include grants for charitable activities.
6. If the NGO provides any goods or services (e.g. training or group formation) to a donor, then GST would be attracted.
7. If an NGO displays business logo etc. of a corporate donor in a prominent manner, then GST will be attracted.
8. If an NGO is registered for GST, then it must also pay reverse charge on services or goods received from unregistered vendors. This includes consultants, caterers, shopkeepers, etc. if they are not registered under GST. Casual supplies (<Rs. 5,000 in a day) from micro-vendors are excluded from reverse charge.
9. Reverse charge is deductible from GST payable as Input Tax Credit.
10. Education and medical services are not chargeable to GST. Export of services is charged at zero-rate, but is counted towards total turnover.
11. There is no general exemption from GST for supplies purchased by NGOs.
Please share this with your friends as an act of charity. No GST will be charged on such sharing.
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