Determining the applicability of GST to services related to charitable and religious activities under the GST Act 2017 involves a nuanced examination of the specific service rendered, the nature of the organization providing it, and any applicable exemptions or notifications. Here’s a breakdown of key case laws and relevant provisions:

Exemptions for Charitable and Religious Activities:

• Registration under Section 12AA of Income Tax Act:Services provided by institutions registered under Section 12AA for the advancement of religion, spirituality, or yoga are generally exempt from GST. (Notification No. 12/2017-Central Tax Rate dated 28th June, 2017)
• Public Libraries:Activities of public libraries, including those run by charitable or religious trusts, by way of lending books or other publications are exempt. (Notification No. 12/2017-Central Tax Rate dated 28th June, 2017)
• Rent out of religious premises:Rent-out of religious premises owned or managed by a registered charitable trust for general public is exempt, subject to rent limitations (e.g., Rs. 1,000 per day for rooms, Rs. 10,000 per day for open areas, Rs. 10,000 per month for shops). GST Act 2017 (Notification No. 12/2017-Central Tax Rate dated 28th June, 2017)
• Specific organizations for pilgrimages:Certain organizations notified by the government, like Haj Committee and Kumaon Mandal Vikas Nigam Limited, are exempt from GST for organizing religious pilgrimages.

Case Laws Interpreting Exemptions:

• AAAR upholds applicability of GST to charitable/religious trusts: This Appellate Authority for Advance Ruling case stated that activities beyond advancement of religion, spirituality, or yoga within a charitable trust might be taxable. (AAAR order no. MAH/AAAR/SS-RJ/14/2018-19 dated 24th December, 2018)
• Appellate Authority for Advance Ruling (Gujarat) Case: This case clarified that renting out a marriage hall in a temple complex by a trust solely for religious functions is exempt, GST Act 2017 even if exceeding rent limits. (Gujarat AAA Ruling No. GUJ/AAAR/AR/04/2019-20)

Important Caveats:

• Commercial activities undertaken by a charitable or religious trust, even within their premises, are generally taxable. (e.g., running a business within the temple complex)
• Services like catering, security, housekeeping provided by third parties within GST Act 2017 exempt premises might be taxable.
• Any fees charged for participation in religious programs not solely focused on advancement of religion, spirituality, or yoga might be taxable.

FAQ QUESTION

Q: Agriculture Related Services under GST Act 2017

Here are some frequently asked questions about agriculture-related services under the GST Act 2017:

Q: Which agriculture-related services are exempt from GST Act 2017?

A: Several categories of services related to agriculture are exempt from the GST Act 2017. These include:

• Support services to agriculture, forestry, fishing, or animal husbandry:This broadly covers services like soil testing, pest control, veterinary healthcare, and agricultural extension services.
• Agricultural operations directly related to production:This includes cultivation, harvesting, threshing, plant protection, and testing of agricultural produce.
• Transportation of agricultural produce:This applies to intra-state transportation of produce by farmers themselves or on their behalf.
• Supply of agricultural produce by farmers:Farmers are exempt from GST on the sale of their own produce, excluding processed or value-added products GST Act 2017.

Q: What is the GST rate on services related to storing agricultural produce?

A: Loading, unloading, packing, storage, or warehousing of agricultural produce has a nil GST rate, meaning no tax is applied to these services.

Q: Do I need to register for GST if I am an agricultural service provider?

A: Registration is generally not mandatory for farmers and other suppliers of exempt services. However, if your annual turnover exceeds the threshold limit (currently Rs. 20 lakhs for most states), you may need to register. Consulting with a tax professional is recommended for specific guidance GST Act 2017.

Q: What are some examples of non-exempt agriculture-related services?

A: Services like processing and packaging agricultural produce, providing cold storage facilities, and operating mandis or agricultural markets are subject to GST at applicable rates depending on the service and location GST Act 2017.

CASE LAWS

The Goods and Services Tax (GST) Act, 2017, impacts a wide range of services related to agriculture. Several case laws have been decided over the years, clarifying the taxability of various agricultural services under the Act. Here’s a brief overview of some key case laws:

Taxability of services:

• SGS India Pvt Ltd. May Scanned order (TN_AAR_25_2020):This case clarifies that “inspection and testing services” on fresh table grapes are classified under Entry 9986 of Notification 11/2017, attracting a nil tax rate, as they fall under “support services to agriculture GST Act 2017.”
• M/s Bhaktawar Mal Kamra & Sons (GST Advance Ruling No. HAR/HAAR/R/2018-19/10):This case rules that commission agents providing services related to the sale or purchase of agricultural produce under reverse charge mechanism on services provided in sale of raw cotton.
• Rajiv Gandhi Centre for Aquaculture (AAAR Ruling No. 05/2019):This case clarifies that research & development, consultancy, testing, and training services related to agriculture and marine products provided by a registered society are exempt from GST under Notification 12/2017 GST Act 2017.

Place of supply:

• Commissioner of State Tax, Assam vs. M/s M.H. Exports Pvt. Ltd. (SC, 2022):This landmark Supreme Court judgment clarifies that the place of supply for transportation services of agricultural produce is the location of the recipient (buyer), not the origin (seller) GST Act 2017

.