GST Registration for Charitable Trusts Selling Spiritual Products
The Appellate Authority for Advance Ruling ruled that a charitable trust selling spiritual products for money must register for GST.
- Ruling
- MAH/AAAR/SS-RJ/14/2018-19 dated 24.12.2018
- Authority
- Appellate Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- The trust sold books and media for consideration.
- The authority ruled these sales constitute business under GST law.
- Charitable status does not automatically exempt an entity from GST registration.
- The trust must register for GST due to these commercial-like activities.
In short
A charitable trust asked if selling spiritual books and CDs for money counts as a business under the Goods and Services Tax (GST) law. The authority decided that because the trust receives payment for these items, it is conducting a business and must register for GST.
What has changed
How it worked before
Many charitable trusts assumed that because their primary goal is religious or charitable, any activity they perform is automatically exempt from GST registration.
What has changed
The authority clarified that the GST definition of business is very broad. If a trust sells goods or services for money, that activity is a taxable supply, regardless of the trust's charitable objectives.
Who this affects
Charitable trusts, religious organizations, and non-profits that sell books, media, or other items to the public.
An example
A local temple sells religious calendars and prayer books to devotees to cover printing costs. Under this ruling, the temple should evaluate if these sales qualify as a business activity. If the total value of these sales exceeds the GST registration limit, the temple may need to register for GST.
What you should do
If your trust sells items for money, review your activities against the GST registration thresholds. Remember that an Advance Ruling only binds the specific trust that asked the question; it is not a universal law for all trusts.
If you do nothing
If you assume your trust is exempt and do not register when required, you may face penalties for non-compliance. A tax officer could issue a notice requiring back-dated registration and payment of unpaid taxes, interest, and fines.
The terms explained
- Consideration
- Any payment, whether in money or otherwise, made in exchange for goods or services.
- Supply
- The sale, transfer, or exchange of goods or services made for a price in the course of business.
- Advance Ruling
- A formal decision from tax authorities on how GST law applies to a specific business situation.
The ruling in detail
Appellate Authority for Advance Ruling
Shrimad Rajchandra Adhyatmik Satsang Sadhana Kendra
MAH/AAAR/SS-RJ/14/2018-19 dated 24.12.2018 · Maharashtra
Questions before the authority
- Whether the activities carried out by the appellant fall under the definition of business as defined under Section 2(17) of the CGST Act, 2017.
- Whether the appellant is liable for registration under the provisions of the CGST Act, 2017 and the MGST Act, 2017.
- Whether the sale of spiritual products which are incidental and ancillary to the main charitable object of the appellant can be said to be business as defined under Section 2(17) of the CGST Act, 2017.
Facts
The appellant is a public charitable and religious trust engaged in spreading the teachings of Paramkrupaludev Shrimad Rajchandra. It conducts activities like satsangs and shibirs, and sells spiritual products such as books, audio CDs, and DVDs at cost or lower than cost. The appellant contends that these activities do not constitute business and therefore it is not liable for GST registration.
Ruling
| Question | What the authority ruled |
|---|---|
| Whether activities fall under definition of business | Yes The definition of business under Section 2(17) is wide enough to include the appellant's activities. |
| Whether liable for registration | Yes The appellant is engaged in the supply of goods and services in the course of business. |
| Whether sale of spiritual products is business | Yes The sale of goods for consideration constitutes supply in the course of business. |
The Appellate Authority upheld the Advance Ruling Authority's decision, concluding that the appellant's activities constitute business under the CGST Act. Consequently, the appellant is liable for registration as it is engaged in the supply of goods and services for consideration. The authority rejected the argument that the charitable nature of the trust exempts it from the definition of business.
Reasoning
The authority reasoned that the definition of business under Section 2(17) of the CGST Act is inclusive and broad, covering trade and commerce. It noted that the trust's objectives include activities of trade and commerce, and the sale of spiritual products for consideration constitutes a supply. The authority distinguished this from previous judgments under the BST Act, emphasizing that the CGST Act provides specific exemptions for charitable activities, implying that non-exempted activities are taxable. It concluded that the appellant's commercial-like activities fall within the ambit of supply in the course of business.
Provisions relied on
- Section 2(17) of the CGST Act, 2017
- Section 7 of the CGST Act, 2017
- Section 22(1) of the CGST Act, 2017
- Notification No. 12/2017 dated 28.06.2017
- Notification No. 9/2017 dated 28.06.2017
For the practitioner
This ruling clarifies that charitable trusts are not automatically excluded from the definition of business under the GST regime. Practitioners should note that **commercial-like activities** conducted by a trust, such as the sale of books or media for consideration, are likely to be treated as taxable supplies unless specifically exempted. It underscores that the **broad definition of business** in the CGST Act overrides arguments based on the charitable nature of the entity if the activity itself involves supply for consideration.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/2024-02/mah.aaar_no.14-2018-19_24.12.18.pdf
Legibility of the scan, as read: high.
Prepared 13-10-2026.
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