Gujarat AAR Rules Yoga Camps Conducted By Banaskantha-Based Charitable Trust Exempt From GST

The Gujarat Authority for Advance Ruling (AAR) has ruled that yoga camps conducted by Sanskar Foundation qualify as charitable activities and are exempt from GST.

It observed that the advancement of religion, spirituality, or yoga falls within the scope of the exemption available to eligible charitable entities. The exemption, however, is subject to the applicant holding a valid registration under Section 12AB of the Income Tax Act.

A two-member bench comprising CGST Member Sushma and SGST Member Vishal Malani noted that Sanskar Foundation is a public charitable trust registered under the Bombay Public Charitable Trust Act and under Section 12AB of the Income Tax Act is eligible for exemption.

The authority held, “Since the applicant is registered under Section 12AB of the Income Tax Act, 1961 and is providing activities by way of conducting yoga camps, which comes under the ambit of charitable activities, the applicant is eligible for exemption from payment of GST.”

The foundation sought advance rulings on the GST treatment of several activities undertaken by it. These included yoga camps, seminars on de-addiction from tobacco and drugs, cleaning and sanitation training, blood donation camps, road safety programmes, vocational training, self-defence training and farmer training.

While examining the claim relating to yoga camps, the authority noted that the exemption notification specifically includes the advancement of religion, spirituality or yoga within the definition of charitable activities.

Having found the services exempt on that basis, it did not examine the applicant's alternate claim for exemption under the entry relating to government-funded training programmes.

The authority also held that seminars on de-addiction from tobacco and drugs fall within the category of public awareness of preventive health. It similarly held that training programmes on cleaning and sanitation qualify as public awareness of preventive health. Both activities are exempt from GST.

The authority, however, declined to extend the exemption to blood donation camps. It observed that such camps are primarily intended to collect blood for medical use. They therefore do not fall within the category of public awareness of preventive health for the purposes of the charitable activities exemption.

The ruling also dealt with several government-funded training programmes undertaken by the foundation. The authority held that self-defence training conducted for the Gujarat Police and government schools qualified for GST exemption. It reached the same conclusion for training under the PM Vishwakarma Scheme and vocational training provided to Kasturba Gandhi Balika Vidyalayas.

However, the authority declined to grant exemption or give a ruling on certain other activities. It observed that the applicant either did not satisfy the prescribed statutory conditions or failed to furnish sufficient work orders and supporting material to establish its eligibility.

The authority clarified that the exemptions granted under the ruling are subject to the applicant holding a valid registration under Section 12AB of the Income Tax Act.

For Applicant: Shri Ronak Lalwani, Advocate