CGST : Public charitable and religious trust engaged in advancement of religious and spiritual teachings also engaged in sale of spiritual goods is said to be in ‘business’ and therefore attract provisions of CGST Act, 2017
(2019] 101 taxmann.com 2 (AAAR-MAHARASHTRA)
APPELLATE AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
Shrimad Rajchandra Adhyatmik Satsang Sadhana Kendra, In re
SMT. SUNGITA SHARMA AND RAJIV JALOTA, MEMBER
ORDER NO. MAH/AAAR/SS-RJ/14/2018-19
DECEMBER 24, 2018
CGST :Appellate Authority upholds order of AAR that appellant, a public charitable and religious trust engaged in advancement of religious and spiritual teachings also engaged in sale of spiritual goods is said to be in ‘business’ and therefore attract provisions of CGST Act, 2017
• On perusal of activities of trust it was found that activities of trade and commerce also form a major part of objectives and as definition of business under CGST includes words ‘trade and commerce’ it can be said that appellant is engaged in supply of goods and services and is therefore liable to get itself registered. Thus, activity of selling spiritual products like books, CDs, DVDs are in nature of supply in course of business.
• There is specific exemption provided to charitable trusts registered under section 12AA of Income Tax Act for certain services. Intention of legislature is to tax all activities of supply goods and services by charitable trust except those specifically exempted. Very fact that certain services have been carved out and given special treatment makes it clear that all trade and commerce transaction of selling books, statues, CDs and DVDs etc. done commercially for consideration come within broad ambit of ‘business’ under CGST Act.