Do non-profit organizations pay GST?

Goods and Services Tax (GST) is a comprehensive tax levied on the supply of goods and services in India. While businesses are generally required to register for GST and comply with tax regulations, many non-profit organizations (NPOs) wonder whether they are liable to pay GST. This article explores whether non-profits need GST registration and under what circumstances they are taxed.

Are Non-Profit Organizations Required to Register for GST?

Non-profit organizations (NPOs), including trusts, societies, and charitable institutions, are not automatically exempt from GST. Their liability depends on the nature of their activities and the type of income they generate.

If an NPO is engaged in the supply of goods or services and its annual turnover exceeds the prescribed threshold of ₹40 lakh (for goods) or ₹20 lakh (for services), GST registration is required. For organizations in special category states, the threshold is lower at ₹20 lakh for goods and ₹10 lakh for services.

If your non-profit operates in Tamil Nadu, opting for GST registration in Coimbatore ensures compliance with tax laws.

When Do Non-Profits Have to Pay GST?

Non-profits must pay GST in the following cases:

1. Commercial Activities: If an NPO provides services or sells goods for a fee, GST applies. For example, if a charitable trust sells handmade products to raise funds, GST is applicable.
2. Sponsorship & Advertisements: If an NGO receives sponsorship or earns revenue through advertisements, GST is levied.
3. Paid Events & Workshops: If an NPO organizes training sessions, workshops, or ticketed events for a fee, GST is chargeable.
4. Services to Businesses: If a non-profit provides services to companies (e.g., consultancy, CSR-related projects), GST registration is mandatory.

For smooth compliance, choosing online GST registration in Coimbatore helps NPOs fulfill their tax obligations.

When Are Non-Profits Exempt from GST?

Non-profit organizations can claim GST exemption in the following cases:

1. Charitable Activities: Services directly related to education, healthcare, or public welfare may be exempt.
2. Donations & Grants: If an NPO receives funds as pure donations without any service in return, GST does not apply.
3. Government-Approved Exemptions: Some NGOs registered under Section 12AA of the Income Tax Act may receive GST exemptions on specific activities.

How to Get GST Registration for Non-Profits?

If your NPO is liable to pay GST, here’s how to register:

1. Collect Required Documents – PAN, trust registration certificate, bank details, and address proof.
2. File Application on GST Portal – Submit the details online.
3. Receive GSTIN – After verification, the organization gets a unique GST Identification Number (GSTIN).

For seamless registration, opting for GST registration in Coimbatore through expert services ensures accuracy and compliance.

Conclusion

Non-profits are not automatically exempt from GST. If they engage in commercial activities, sponsorships, or charge fees for services, GST applies. To ensure compliance, non-profits can opt for online GST registration in Coimbatore and follow necessary tax regulations.