With the introduction of Goods and Services Tax, the country underwent a dynamic transformation in its economic architecture that has revolutionized the procedural processes in the country’s indirect taxation regime. As such there have been innumerable concerns about the operability and application of GST, with each sector of the economy demanding clarifications to be issued by the GST Council. Similarly in a recent notification issued by the Central Board of Direct Taxes (Notification No.12/2017-Central Tax dated 28th June 2017), the application of GST has been notified on specific activities deemed as ‘charitable’ under organization registered under Section 12AA.
This notification makes the exemption to charitable trusts available for charitable activities more specific. While the income from only those activities such as advancement of public health, advancement of religion, spirituality and yoga, preservation of environment, watershed development, advancement of education towards mentally ill, prisoner and old persons in rural areas is exempt from GST, income from the activities other than those mentioned above is taxable. This notification makes the exemption to charitable trusts available for charitable activities more specific. While the income from only those activities listed above is exempt from GST, income from the activities other than those mentioned above is taxable.
In August 2017 VANI had convened a select group consultation of Chief Financial Officers in New Delhi to discuss the various aspects of GST that had subsequently resulted in forming a core group that worked on a comprehensive document detailing issues Voluntary Organizations face when confronted with GST. In the coming months VANI is seeking to conduct an interface with the GST Council concerning the various clauses and modalities of GST and will endeavor to petition Ministry Of Finance. It is also necessary that the concerned line departments such as CBDT issue circulars and notifications that address the financial operations of Voluntary Organizations in their day to day activities and provide clarity on what services are subjected as ‘taxable’. For your perusal we are attaching the document prepared by the select group on recommendations to the GST Council and the CBDT notification letter.
Looking towards these issues, VANI is conducting a one day Round table of Chief Financial Officers on GST on 13th October 2017 to discuss the document prepared by our select group as well as solicit inputs on the notification issued by the Central Board of Direct Taxes. We request organizational heads to forward the participation of their respective organization’s Chief Financial Officers, so as to bolster VANI’s endeavor in conducting targeted advocacy on regulatory laws as well as provide their experienced inputs. The meeting’s details are provided below, VANI will be providing travel to outstation participants with one day accommodation.
Round table of Chief Financial Officers on GST
Date- 13th October 2017
Venue- Amaltas Hall, India Habitat Center, Lodhi Road, New Delhi
I request you to kindly forward your confirmations to my colleague Mr Arjun Phillips firstname.lastname@example.org. We will be forwarding you the agenda very soon.
Chief Executive Officer
Voluntary Action Network India (VANI)
Plot No. 7, PSP, Sector 8, Dwarka,
New Delhi 110075
Phone: +91-11- 49148610
Email: email@example.com, firstname.lastname@example.org