Q. 175 “ABC” company is in to business of providing software training services. ABC company is in the process of of providing software training services under the scheme of skill development to one of the NGO which holds 12A and 80G certificate. do we (ABC company) need to charge GST on invoice to NGO ?

Ans. The supply of software training services seems to be exchanged for consideration in the course or furtherance of business. The above transaction is not covered under exemption notification; hence it would be taxable under GST.

Only the below services are exempt under GST:-

1. Any services provided by:
   1. The National Skill Development Corporation set up by the Government of India;
   2. A Sector Skill Council approved by the National Skill Development Corporation;
   3. An assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;
   4. A training partner approved by the National Skill Development Corporation or the Sector Skill Service Tax Exemptions to be continued in GST as decided by GST Council in relation to
      1. The National Skill Development Programme implemented by the National Skill Development Corporation; or
      2. A vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or

Any other Scheme implemented by the National Skill Development Corporation.

Q. 174 “ABC” company which is dealing in computers and also providing AMC services. ABC company is in the process of supply of computers and AMC to one of the NGO which hold 12A and 80G certificate. do we (ABC company) need to charge GST on invoice to NGO ?

Ans. The supply of computers and AMC services seems to be exchanged for consideration in the course or furtherance of business. The above transaction is not covered under exemption notification; hence it would be taxable under GST.

Q. 173 one of our client is active under NGO, who is fighting with us regarding GST exemption. He is not willing to pay GST & he has sent the attached certificate(as per my understanding the attached certificate is only for income tax exemption 12A & 80G). Can you please confirm me whether Trust/NGO can take GST exemption? If yes, What documents should i collect ?

Ans. Services provided by a charitable trust are covered under entry 1 of the exemption notification no. 12/2017- CT (R ). In order to take exemption under entry 1, the following two conditions must be satisfied: – 1. The entity must be registered under section 12AA/ 12AB of the Income Tax Act, 1961, and 2. The entity must carry out one or more of the specified charitable activities. You can ask for a trust registration certificate mentioning charitable activities u/s 12AA/ 12 AB of the Income Tax Act, 1961.