Page 156 - GSTL_7th May 2020_Vol 36_Part 1

114 GST LAW TIMES [ Vol. 36
Discussion and findings :
29. We have considered the submissions made by the applicant in their
application, and at the time of personal hearing. Jurisdictional Authority has not
furnished any comments in the matter.
30. We find that the applicant has raised the following question for the
purpose of advance ruling under Section 97 of the Central Goods and Services
Tax Act, 2017/the Gujarat Goods and Services Tax Act, 2017 (hereinafter collec-
tively referred to as “the GST Acts”) :
Whether the applicant is liable for registration under the GST Acts?
31. We find from the objectives of the applicant as described in the
Memorandum of Association as well as from the bye-laws of the applicant,
which laid down the modes by which the applicant can raise funds for its activi-
ties as mentioned in foregoing paras that the applicant is a charitable trust regis-
tered under the Bombay Public Trust Act, 1950. It was established for community
based research, policy analysis, planning and technical assistance for the purpose
of enhancing prevention, mitigation and management of disasters and reorienta-
tion of relief and reconstruction to local initiatives. Thus the applicant is engaged
in training/research relating to disaster prevention, mitigation and management.
32. We further observe that the Applicant is duly registered as a chari-
table trust under Section 12AA of the Income-tax Act, 1961 (hereinafter referred
to as “the Income-tax Act”) as well as under Section 80G of the Income-tax Act.
In other words, the entire income of the applicant is exempt from income-tax,
even the donations made to the applicant are admissible deductions for the do-
nors under Section 80G of the Income-tax Act.
32.1 The Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017
(Sr. No. 1) clearly provides exemption to Services by an entity registered under
Section 12AA of the Income-tax Act, 1961 (43 of 1961) by way of charitable activi-
ties. Identical entries are contained in the exemption notifications issued under
the Gujarat Goods and Services Tax Act, 2017 as well as under the Integrated
Goods and Services Tax Act, 2017. Entry No. 1 of the Notification No. 12/2017-
Central Tax (Rate), dated 28-6-2017, which is relevant for the present purpose,
reads as under :

Sl. Chapter, Description of Services Rate Con-
No. Section, (per dition
Heading, cent.)
Group or
Service
Code
(Tariff)
(1) (2) (3) (4) (5)
1 Chapter Services by an entity registered under sec- Nil Nil
99 tion 12AA of the Income-tax Act, 1961 (43
of 1961) by way of charitable activities.

32.2 Further, the phrase “charitable activities” has been defined in
clause 2(r) of the said exemption notification. The relevant extract of the defini-
tion is reproduced herein below :
2(r) “charitable activities” means activities relating to -
(i) to (iii) xxxxx;
GST LAW TIMES  7th May 2020  156