In Re: Shrimad Rajchandra Adhyatmik Satsang Sadhana Kendra
GST
2018 (9) TMI 235 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (16) G. S. T. L. 332 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 14-6-2018
GST-ARA-41\/2017-18\/B-48
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
\nPROCEEDINGS
\n(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
\nThe present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by Shrimad Rajchandra Adhyatmik Satsang Sadhana Kendra, the applicant, seeking an advance ruling in respect of the following questions;
\n1) Whether the applicant which is a charitable trust with the main object of advancement of religion, spirituality or yoga can be said to be in business so as to attract the provis<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n T Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act \/ MGST Act would be mentioned as being under the “GST Act”. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s, 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 organizations for helping people. The ancillary object also includes, protecting birds and animals from being killed in slaughter houses and other activities. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n b) An activity or transaction in connection with or incidental or ancillary in sub-clause (a); = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n applicant in under the main object of spreading religious and spiritual teachings. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ing out business even for the publications being sold by the applicant to the devotees of Paramkrupalu Shrimad Rajchandra. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n details by 25.06.2018. Accordingly we are submitting following details. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n mber of decisions on the point including the decisions cited by the learned counsel before us. It may be stated that the question of profit motive or no profit motive would be relevant only where person carries on trade, commerce, manufacture or adventure in the nature of trade, commerce, etc. On the facts and in the circumstances of the present case irrespective of the profit motive, it could not be said that the trust either was a “dealer” or was carrying on trade, commerce, etc. The trust is not carrying on trade, commerce, etc., in the sense of occupation to be a “dealer” as its main object is to spread the message of Saibaba of Shiridi as already noticed above. Having regard to all aspects of the matter, the High Court was right in answering the question referred by the Tribunal in the affirmative and in favour of the respondent-assessee. We must however add here that whether a particular person is a “dealer” and whether he carries on “business” are matters to be decided on the fa<\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n usiness' as the main object of the Trust is not business. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Trust is to carry out, get carried out and support spiritual activities such as 'Satsang' (association with saints or gentlemen), worshiping and meditation for the final salvation in such a manner that the persons from all castes desirous of salvation attains salvation and their unique devoutness to Eternal 'Vitrag' Path Leading, Most Compassionate Pramkrupalu Shrimad Rajchandraji increases by following His commandments, gaining faith and sentiment towards the mode of obtaining salvation taught by 'Tirthankar' Bhagvan Shree Mahavir Swami and 'Vitrag' Prabhu and famous as Jain Religion in the world and by becoming non-attached to worldly things or happiness. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ual \/ religious products like Satsang \/ Bhakti CD\/DVD, spiritual books Satsang Booklets, Magazine etc. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n le to GST. For instance sale of goods shall be chargeable to GST”. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n aggregate turnover in a financial year exceeds twenty lakh rupees: provided that where such person makes taxable supplies of goods or services or both from any of the special category states, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n egistered under this Act ; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n f goods or supply of services as referred to in Schedule II = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ancement of teachings of Param krupaludev Shrimad Rajchandra. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rsons to any premises; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n , service or information. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rust deed paras extracted from the copy of Trust Deed translated in English submitted by them. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n r buying and selling in this manner or there is any decline in the value of the securities, then the Trustees or any Trustee from out of them shall not be responsible for the same. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n des pupils. Even such persons who are fit to take such knowledge, by making provision in writing as per the law to admit and educate them in such institution = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e into consideration of the Trustees etc. and they shall have absolute right to sign on behalf of the Trust on such documents which may be required to be prepared in respect thereof, to get or give them same registered and to undertake such proceedings which may be required to complete the said works and they shall also hive absolute right to get prepared the necessary documents after giving consideration in respect thereof and they shall have absolute right to collect the sale proceeds and to issue receipt in respect thereof.” = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n fication, the transactions that are to be treated as- = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n evelopment relating to: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n facts of the present case. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: Shrimad Rajchandra Adhyatmik Satsang Sadhana KendraGST2018 (9) TMI 235 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (16) G. S. T. L. 332 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AARDated:- 14-6-2018GST-ARA-41\/2017-18\/B-48 GSTSHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER PROCEEDINGS (Under section 98 of the Central Goods and Services … Continue reading “In Re: Shrimad Rajchandra Adhyatmik Satsang Sadhana Kendra”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13520","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13520"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13520\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n02. FACTS AND CONTENTION – AS PER THE APPLICANT
\nThe submissions, as reproduced verbatim, could be seen thus-
\nBrief Description of Activity carried out by Applicant:
\n1.1 The Applicant is a religious charitable trust registered under Section 12AA of the Income Tax Act, 1961 carrying out religious and charitable activities.
\n1.2 The Trust is principally engaged in the field of spreading the knowledge of Jain Dharam and advancement of teachings of Param krupaludev Shrimad Rajchandra. The Trust holds various Satsangs and Shibirs for spreading the knowledge of the Jain Dha<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n2.4 The applicant was registered under the erstwhile Maharashtra Value Added Tax Act, 2002 in view of the specific Explanation in the definition of “dealer” under Section 2(8) of the MVAT Act, 2002.
\n2.5 With effect from 1.7.2017, the Goods and Service Tax was brought into force and the existing registered dealers under the erstwhile MVAT Act, 2002 were migrated to GST.
\n2.6 In reparation for implementing GST, the Commissioner of Sales Tax, Maharashtra issued Circular No. 357 of 2016 dated 12.11.2016 mandatorily requiring the existing registered dealers under the provisions of MVAT Act,2002 to enroll themselves for GSTIN.
\n2.7 Thus, the applicant was also migrate<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction;
\n(d) Supply or acquisition of goods including capital goods and services in connection with commencement or closure of business;
\n(e) Provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;
\n(f) Admission, for a consideration, of persons to any premises;
\n(g) Services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation:
\n(h) Services provided by a race club by way of totalisator or a licence to book maker in such club; and
\n(i) An activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are en<\/p>\n
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\n1.7. It is settled law that where the public charitable trust carries out activity for advancement of its main object of charitable purpose, the same cannot be said to be business in commercial sense as defined in the taxing Statute, There is no motive to earn profit out of the said activities and profit earned if any is spent on the advancement of the general public utility and hence, there cannot be said to be any business which is carried out by the Public Charitable Trust.
\n1.8. Thus, in the present case also, the main object of the applicant being advancement of the religious and spiritual teachings Paramkrupalu Shimad Rajchandra, the applicant cannot be said to be carrying out business as defined in Section 2(17) of the CGST Act, 2017,
\n2. Once the main object of the applicant cannot be considered as business, the ancillary or incidental objects also cannot be considered as business.
\n2.1. The ap<\/p>\n
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\n2.5. The applicants rely on the judgment of Hon'ble Supreme Court in the case of Commissioner of Sales Tax Vs. Sai Publication Fund (2002) 4 SCC 7 (SC), = 2002 (3) TMI 45 – SUPREME COURT where in the Supreme Court categorically held that where the main activity is not business, then any incidental or ancillary transaction, unless established by the revenue department to be an independent business transaction, will also be considered as charitable only and not business. The Supreme Court held that where the main and dominant activity of the assesse trust in that case was to spread message of Sai Baba, then bringing out publications and sale thereof by the assesse Trust to its devotees at cost price did not amount to business.
\n2.6. The applicant further relies on the judgment of Hon'ble Supreme Court in the case of CIT Vs. Gujarat Maritime Board (2007) 14 SCC 704 (<\/p>\n
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\n3.2. From a plain reading of the above Clause (a) of Section 7(1) it is clear that supply will be liable to GST only when it is made for a consideration in the course or furtherance of business.
\n3.3 As submitted above, since the present case, the applicant is not carrying out any business, there can be no supplies liable to GST at the hands of the applicant.
\n4. Since the aggregate of taxable supplies of goods and services does not exceed Twenty Lakh Rupees, the applicant is not liable for registration under Section 22(1) of the CGST Act 2017.
\n4.1 The applicant submits that Section 22(1) of the CGST Act, 2017, provides for registration under the CGST Act, 2017. The said Section 22(1) is extracted below for ready reference:
\n22. (1) Every supplier shall be liable to be registered under this Act in the State or Union t<\/p>\n
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\n1. Copy of Trust Deed translated in English
\n2. In Maharashtra, we have following activities.
\n(a) Entry to Satsang in Prayer hall is free to all.
\n(b) Sale of cassettes, CD and other Puja Samagri etc.
\n3. Judgment of Hon. Bombay High Court in case of Lalbaugcha Raja Sarawajanik Geneshotsav Mandal (MVXA Tax Appeal No.10 of 2015 dt 28.6.2015) = 2015 (7) TMI 1289 – BOMBAY HIGH COURT
\n4. Costing of major items sold
\nAs mentioned earlier, we have no formal costing system. We herewith attach the sheet showing costing of major items which is prepared as per purchase cost and the applicable administrative cost.
\n5. In the hearing, the learned ARA asked about applicability of term 'Trade' to the selling activity of Trust.
\nWe have already cited judgment of Hon. Supreme Court in case of Sai Publication Trust (126 STC 288) (SC). = 2002 (3) TMI 45 – SUPREME COURT. In this case the definition of 'business' under BST Act was <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n6. We also bring to kind knowledge the clause 26 in the Trust Deed which says that in case this Trust is not able to carry on activities as per objectives of the Trust then the Trust should be amalgamated with Trust having similar objectives. Thus, there is no business approach of the Trust and all activities are for charitable object.
\n7. In the hearing, reference was made that there is exemption entries in relation to services carried out by Trust. However, such exemption may be given for the Trust who are in business and the law wants to exclude the given services. In any cage, giving exemptions etc., cannot govern the definition clause of 'business', Unless the entity falls within the meaning of 'business' it cannot be subjected to tax based on any other criteria.
\n8. Applicant submitted the details of main objectives of the trust and few sale of costing on 25.6.2018 as under:
\nName of the Trust
\nShrimad Rajcharcra Adhyatmi<\/p>\n
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\nOther Objectives of the Trust: (Relevant Extract)
\n1) Social Services, public Aids and Religious Activities
\nTo carry out, get carried out and support activities which uplifts peoples social, wordly, economic conditions and religious activities such as 'Swamivatsalya, 'Sadharmik, Devotion, Pilgrimage, Sadhak Samadhi' Funds etc. and<\/p>\n
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\nNature of Products & Cost thereof
\nRef. to the object clause
\nCost per Unit Rs.
\nSale Per Unit Rs.
\nSHRIMAD RAJCHANDRA VACHANAMRUTJI (IN GUJ) Scriptures & commandments of Shrimad Rajchandraji
\nFundamental objectives -Spiritual
\n228.88
\n225.00
\nPUSHPMALA Booklet of Do's & Don'ts (Practice booklet by Shrimad Rajchandraji
\nFundamental objectives -Spiritual
\n14.92
\n15.00
\nSADGURU ECHOES Monthly Magazine
\nOther objectives
\n– Activities for spreading the knowledge.
\n43.94
\n35.00
\nVIVEKCHUDAMANI SHIBIR – 11-DVD Discourse by Gurudev on selected Granth\/Scripture (Full one year set will include 12 DVD)
\nOther objectives
\n– Activities for spreading the knowledge.
\n412.52
\n400.00
\nVIVEKCHUDAMANI SHIBIR -11 MP3 Discourse by Guru dev on selected Granth\/Scripture (Full one year set will include 12 MP3)
\nOther objectives
\n– Activities for spreading the knowledge.
\n89.19
\n75.00
\n03. CONTENTION – AS P<\/p>\n
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\nThe dealer is engaged in supply of goods under GST. The dealer is holding a stock of goods as 31\/03\/2017 at Rs. 15,88,2218\/- (which is supposed to sale\/supply under GST Act) The year wise details of income \/ consideration received from sale of goods (Spiritual Products) in previous years is as under –
\n2016-17 – Rs. 4359967\/-
\n2015-16 – Rs. 4972259\/-
\n2014-15- Rs. 4481415\/-
\n2013-14 – Rs. 3926341\/-
\nFurther the dealer have provided accommodation and food in various Shibirs\/Satsang for consideration. The details of Shibir and stay income areas under –
\n2016-17 – Rs. 51910491\/-
\n2015-16 – Rs. 78042209\/-
\n2014-15 – Rs. 32815747\/-
\nFurther the dealer also effected additions and sale of capital assets. The year wise details are as under-
\nFinancial year
\n2016-17
\n2015-16
\n2014-15
\nFurniture & Fixture
\n
\n
\n
\nAddition during year
\n1100992\/-
\n4273725\/-
\n1768859\/-
\nSale during the year
\n641009\/-
\n1650006\/-
\n1<\/p>\n
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\nIn this case the dealer is holding a stock of goods as on 31.03\/2017 at Rs. 15882218-(which is supposed to sale\/ supply under GST Act) and year wise turnover in previous years is as under
\nFinancial Year
\nAmount
\n2016-17
\n4359967\/-
\n2015-16
\n4972259\/-
\n2014-15
\n4481415\/-
\n2013-14
\n3926341\/-
\nSection 23 refers about the persons not liable for registration
\n(1) The following persons shall not be liable to registration, namely:-
\n(a) Any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from the tax under this Act or under the Integrated Goods and Services Tax Act;
\n(b) An agriculturist, to the extent of supply o<\/p>\n
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\n(v) such other person or class of persons as may be notified by the Government on the Recommendations of the Council.
\nIn view of the above provisions under section 22, 23 and 24 the above Charitable Trusts is liable to Registration under the provisions of Central Goods and Service Tax Act 2017 and Maharashtra Goods and Service Tax Act, 2017.
\n3) Whether sales of spiritual products which is incidental \/ ancillary to main charitable object of the applicant can be said to be business of the applicant in terms of the definition in Section 2(17) of the Central Goods and Service Tax Act 2017 and option provision of Maharashtra Goods and Service Tax Act 2017?
\nThe above charitable trust is engaged in supply of products namely –
\nKumKum (tax free), wooden desk\/ wooden chitrapat stand (taxable), DVD\/CD (taxable), Books (tax free), Agarbatti\/lncene stick (taxfree), Counter \/ timepiece (taxable), periodicals (taxfree), Mala, diary, calendar, Greeting card (taxable), <\/p>\n
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\n04. HEARING
\nThe Preliminary hearing in the matter was held on 11.04.2018, Sh. Rahul Thakkar, Advocate along with Sh. Nilesh Parekh Office bearer and Sh. Hemal Ashra, C.A. (Auditor of Trust) and Sh. C. B. Thakkar Advocate appeared and requested for admission of application as per contentions made in their ARA. They were specifically requested to give the costing of the items which are being sold by them as detailed in their catalogues. Jurisdictional Officer Sh. Vikrant Gaikwad, Asstt. Commr. Of S.T. (D-836), Nodal -3, Mumbai appeared and stated they would be making written submission shortly.
\nThe final hearing was held on 13.06.2018, Sh. C.B. Thakkar, Advocate, Sh. Nilesh Parekh Office bearer and Sh. Hemal Ashra, C.A. (Auditor of Trust) appeared and made oral contentions that they had not submitted the costing of items as requested during Preliminary hearing. They stated that they would be giving costing of 5 to 7 items hav<\/p>\n
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\n3. Applicant further submitted that the ancillary and incidental objects of the applicant trust are 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 organizations for helping people. The ancillary object also includes, protecting birds and animals from being killed in slaughter houses and other activities.
\nFor all above the applicant submits that, the applicant is a public charitable trust with main objective of advancement of religious and spiritual teaching and are not engaged in any trade or commerce etc. As such it cannot be said to be business in commercial sense as defined in section 2(17) of the GST Act. They further submit that as the main activity cannot be considered as business, the ancillary or incidental activity, o<\/p>\n
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\n (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;
\n (h) services provided by a race club by way of totalisator or a Licence to book maker in such club; and
\n (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;
\nWe find that there is no doubt that applicant Trust is a person as defined u\/s 2(84) of the GST Act. We are first required to ascertain as to whether the applicant is carrying out any business or not.
\nWe find that as per details above 'business' is defined under GST Act under Section 2(17). As per this definition we are required to have a relook at details as given under sub clause (a), (b) and (c) of Section 2(17) which states that business includes:-
\n (a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any ot<\/p>\n
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\nIn the same way we find that Wikipedia states that Trade involves the transfer of goods or services from one or entity to another, often in exchange for money.
\nThus we find that the above are the definitions of trade as per general understanding as well as per business understanding.
\nIn same way the word 'Commerce' has several definitions which are as under:-
\nAs a noun
\nIt means business of buying and selling things.
\nAs per Business Dictionary, it means exchange of goods or services for money or in kind, usually on a large scale enough to require transportation from place to place or across city, state or national boundaries.
\nSimilarly we find that Wikipedia defines it as “exchange of goods and services, especially on a large scale.”
\nIn view of the above definitions, now we examine the activities that are being undertaken by the applicant.
\nWe find that the applicant in their submissions have stated that they sell various spiritual products (Annexure-6)<\/p>\n
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\nTrust Deed Para 5, This Trust is created as 'Public Charitable and Religious Trust and the said Trust shall the known as “Shrimad Rajchandra Adhyatmik Satsang Kendra” and the Trustees shall give the said name to the Trust and manage the Trust by the said name and they shall administer, make disposition and use the property as per this Trust Deed.
\nPara 7-The party of the second part, the Trustees, shall make disposition and investment of the aforesaid property as follows:
\nThe aforesaid Trust Property can be invested in the investments approved under the. The Bombay Public Trust Act, 1950 and The Income Tax Act, 1961 and the immovable and movable properties and the income thereof can be used in the Trust. Subject to the prevailing law, the Trustees shall have absolute authority to buy the securities and to sell the purchased securities and to buy other securities from out of the sale procee<\/p>\n
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\nPara – (8) OBJECTIVES OF THE TRUST
\nFundamental objectives Of the Trust – Spiritual Activities
\nThe fundamental objectives of this Trust is to carry out, get carried out and support spiritual activities such as 'Satsang' (association with saints or gentlemen), worshiping and meditation for the final salvation in such a manner that the persons from all castes desirous of salvation attains salvation and their unique devoutness to Eternal “Vitrag' Path Leading, Most Compassionate Paramkrupalu Shrimad Rajchandraji increases by following HIS commandments, gaining faith and sentiment towards the mode of obtaining salvation taught by 'Tirthankar' Bhagvan Shree Mahavir Swami and Vitrag Prabhu and famous as Jain Religion in the world and by becoming non-attached to worldly things or happiness.
\nOther Objectives of t<\/p>\n
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\n(3) Activities for the kindness to all living beings
\nTo carry out activities for the kindness to all living beings such as to stop the beasts and birds taken to slaughter house, to free them from there, to rear them in Panjrapol, birds asylums etc. for the endurance of their lives after releasing them from there.
\nNo portrait, photo, statue, symbol, plaque, monuments, Samadhi , museum or anything or article, except of Shree Vitrag Prabhu and Most Compassionate Shrimad Rajchandraji and the persons associated with the incidents occurred during HIS life-time, also existing Sadgurudev Pujya Gurudevshri Rakeshbhai Zaveri will not be allowed to be kept in the immovable and movable property acquired by purchasing, constructing, gift or any other manner for achieving the above mentioned objectives and considering to be the ownership of <\/p>\n
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\nNow in view of the detailed submissions of the applicant, submissions of the jurisdictional officer, relevant paras of Trust Deed and detailed related discussions above, we examine the scope of supply as per Section 7 of the CGST Act which is as under:-
\nSection 7 of CGST Act, 2017: –
\n(1) For the purposes of this Act, the expression '”supply” includes-
\n (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, ren<\/p>\n
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\n (a) a supply of goods and not as a supply of services; or
\n (b) a supply of services and not as a supply of goods.
\nIn view of the above detailed discussions it is very apparent that the applicant is engaged in Trade and Commerce by way of selling of goods and services as per detailed discussions above and are very well covered under the definition of 'business' as given under Section 2(17) of the CGST Act and in view of this, their activities are very well covered within the scope of 'supply' as given in Section 7 of the CGST Act, 2017 and are therefore liable to tax as applicable in respect of goods supplied or services rendered.
\nNow we refer to their claim for exemption as per they being a charitable trust. We find that the Charitable Trust must satisfy the following two criteria: to avail exemption from payment of GST in case of services.
\nThere is no exemption granted to charitable trusts in case of supply of goods which ar<\/p>\n
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\n * Abandoned, orphaned or homeless children;
\n * Physically or mentally abused and traumatized persons;
\n * Prisoners; or
\n * Persons over the age of 65 years residing in a rural area;
\nPreservation of environment including watershed, forests and wildlife.
\nWe find that the applicant is registered under Section 12AA of the Income Tax Act but the activities being undertaken by the applicant in respect of services being provided by them are not covered under the definition of charitable activities.
\nFrom the information provided by the concerned Officer\/ Jurisdictional officer, we see that applicant trust generates income from sale of goods, provides for accommodation and foods in various Shibir\/Satsang on payment\/ chargeable basis, The Charitable Trust organize Shibir\/Satsang for participant and they are not free for the participants, as the trust charge some amount from the participants in the name of accommodation or participation. Satsang is the only activity<\/p>\n
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\n06. In view of the deliberations as held herein above, we pass an order as follows:
\nORDER
\n(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
\nNO.GST-ARA-41\/2017-18\/B-48
\nMumbai, dt. 14.06.2018
\nFor reasons as discussed in the body of the order, the questions are answered thus –
\nQuestion 1:- Whether the applicant which is a charitable trust with the main object of advancement of religion, spirituality or yoga can be said to be in business so as to attract the provisions of Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017?
\nAnswer: – Answered in affirmative.
\nQuestion 2:- Whether the applicant which is a charitable trust with main object of the advancement of religion, spirituality or yoga is liable to registration under the provisions of Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017?
\nAnswer: – Answered in <\/p>\n
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