Q. 212 we are dealing with security services. we have provided the services to trust which is registered under 12A & 80G. Do we need to charge GST to the trust or it is exempted from GST. Kindly provide us the details of notification ?

Ans. Under GST exemptions, services by an entity registered under section 12AA/12AB of the Income-tax Act, 1961 by way of charitable activities is exempt. However, services provided to trust are not covered under exemptions. Hence, GST is to be levied. The above details have been included in GST notification no. 12/2017- CTR.

Q. 211 If Incase I have paid GST on foreman commission @12% for FY 2021-22 under chit fund business. under what circumstances i can claim Input tax credit. Kindly clarify conditions for claiming ITC on chit fund with respective recent notifications issued ?

Ans. Earlier, services provided by a foreman of a chit fund in relation to chit were provided with the concessional rate of tax of 12%. And, input tax credit was not allowed then but the said entry has now been omitted w.e.f 18.07.2022.. Therefore, for FY 2021-22, ITC will not be available. Further, w.e.f 18.07.2022, the said services are chargeable with 18% and now full ITC may be claimed. For claiming ITC, the conditions mentioned in section 16(2) and rule 36 of the CGST rules to be complied with.

Q. 210 ( 1) Whether RCM is applicable to a recipient TRUST on Sponsorship Services provided by a body corporate or a partnership firm to the Trust ? (2) Whether RCM is applicable to a recipient which is a body corporate or a partnership firm if sponsorship services are provided by the TRUST ?

Ans. As per entry 4 of notification no. 13/2017- CTR, services provided by way of sponsorship to any body corporate or partnership firm by any person shall be liable to GST under reverse charge. In case of sponsorship services provided by a body corporate to a trust, it is covered under forward charge and not under reverse charge. And in case of sponsorship services provided by a trust to a body corporate, it is covered under reverse charge. Since the recipient of sponsorship services is a body corporate, GST on the above services is payable by the recipient under reverse charge.