GST on spiritual products sold by trust?
Dr Sanjiv AgarwalCharitable Trusts are formed for carrying out certain
objectives for which charitable trust is constituted as
per its trust deed. Though such trusts may enjoy
immunity from levy of GST on their activities, viz.,
supply of goods or services, all activities may not be
exempt. On whether sale of spiritual products by a
charitable trust would amount to „business‟ and
„supply‟ for the purpose of levy of GST, the Authority of
Advance Ruling (AAR), Maharashtra has pronounced
an advance ruling.
In Re: Shrimad Rajchandra Adhyatmik Satsang Sadhana Kendra (2018) 16
GSTL 332; (2018) 9 TMI 235; (2018) 97 taxmann.com 20 (AAR, Maharashtra),
the AAR ruled that it would be a taxable supply, as also affirmed by the
Appellate Authority for Advance Ruling (AAAR), Maharashtra (2019) 20 GSTL
779; (2019) 71 GST 541; (2019) 1 TMI 25; (2019) 101 taxmann.com 2 (AAAR-
Maharashtra).
Facts and Advance Ruling
The applicant, Shrimad Rajchandra Adhyatmik Satsang Sadhana Kendra,
was a public charitable and religious trust engaged in advancement of the
teachings of Paramkrupaludev Shrimad Rajchandra and spreading the
knowledge of Jain religion entrusted by Shri Mahavir Swami and other
Tirthankars.
The main object of the applicant trust was to spread the knowledge of the
Jain Dharam and advancement of teachings of Paramkrupaludev Shrimad
Rajchandra. The ancillary and incidental objects of the applicant trust were
to carry out activities for advancement of main object such as Satsang,
Shibirs, etc. To spread knowledge of the Jain Dharam through publications
of books, audio CDs, DVDs, etc. and other materials for students and public
in general and to set up organisations for helping people. The ancillary
object also includes, protecting birds and animals from being killed in
slaughterhouses and other activities.
The applicant was registered under VAT law and subsequently migrated to
GST. It is also registered u/s 12AA of Income Tax Act, 1961.
It sought advance ruling on the following issues: