Levy of GST on the service of display of name or placing of name plates of the donor in the premises of charitable organisations receiving donation or gifts by individual donors.

Circular No.: 116/35/2019-GST
Date of Circular: 11th October 2019
Relevant Sections and Rules:

• CGST Act, 2017:
  • Section 7: Scope of supply
  • Section 2(31): Consideration
  • Section 168(1): Power to issue instructions

Summary of Circular:

This circular clarifies the GST applicability on donations or gifts received by charitable organisations where donors are acknowledged by placing name plates or similar forms of public recognition.

1. Core Clarification – No GST on Philanthropic Acknowledgement:

• When a charitable or religious organisation displays the donor’s name on a nameplate, digital board, wall, or door, merely as a token of gratitude, and not for commercial promotion or advertisement, such action does not amount to a supply.
• Therefore, no GST is leviable on such donations or gifts.

2. Key Conditions for Exemption from GST:

All the following must be satisfied:

• The recipient is a charitable organisation involved in advancement of religion, spirituality, yoga, or similar causes.
• The payment is in the form of a donation or gift, having no quid pro quo or commercial obligation.
• The purpose is philanthropic, and not to advertise or promote any business or brand.

3. Illustrative Examples (Where No GST Applies):

• A digital blackboard donated by Mr. Rajesh with “Good wishes from Mr. Rajesh” printed below it.
• A temple room constructed from a donation by Smt. Malati Devi, marked with “Donated in memory of her father.”

In both cases:

• There is no reference to any business, and
• The act is purely philanthropic.

Source: Circular No.: 116/35/2019-GST