GST on Charitable Trusts & NPOs: What Every Trustee, CFO and CSR Head Needs to Know Now
At SCORE Accounting, we see the same misconception open almost every GST review for charitable trusts: a 12A/12AB certificate is not a GST exemption. Exemption is tested activity by activity, not by an organisation’s charitable status.
The ₹20 lakh threshold catches just as many trusts off guard, since exempt income counts toward it too. CSR funding sits in murkier territory still. No CBIC circular has settled its GST treatment, and outcomes often hinge on how donor recognition is worded in the agreement, not on intent.
Input tax credit is the quiet loss. Rule 42 discipline and activity-wise bookkeeping decide whether trusts keep the credit they’re entitled to.
Our latest guide unpacks all five risk areas, with a quick exempt vs. taxable snapshot for NPOs.
Read it here: https://drive.google.com/file/d/1mBldsCj42QmcOPtmgkH1lk5G8I8ll3_2/view?usp=sharing
Disclaimer: This article is for general information only and does not constitute legal, financial or tax advice. Laws, rates and due dates change, and their application depends on your facts. Please consult a qualified professional before acting on it.