Legal AdviceNGO

Is GST Registration Required for NGO

Get help with the GST registration required for NGO, and get quick answers on how it affects your NGO

Introduction : India’s move to a Goods and Services Tax (GST) which introduced new tax rates, has created many questions for Indian NGOs while they try to navigate the change in their taxation.  

What GST is, and Why Is It Important for an NGO?

GST (Goods and Services Tax) is a major tax reform in India that came into effect from July 1, 2017. GST is a nationwide indirect tax system that replaces numerous state and central taxes. The main objectives of the GST are to streamline the taxation process, reduce tax evasion, and raise revenue.

If you are an NGO in India, it is important to remember that legally GST registration is required for NGO unless you have an exemption. For the GST registration required for NGO, your organisation must provide the following information to the relevant authorities:

  1. Name of the organisation
  2. Contact information (including mailing address, website address, and telephone number)
  3. Identification number (INN)
  4. Business registration number (BRN)
  5. Type of business activity carried out by the organisation
  6. Estimated annual turnover of the organisation in Indian rupees
  7. Date of formation of the organisation
  8. Purpose or objectives of the organisation

Here’s What You Need to Know if You’re an NGO in India

  1. You need to register for GST if you’re an organisation with annual revenue of more than Rs 50 lakh (approx. $7 million).
  2. You need to submit your GST registration form online. The form can be found on the government’s website (www.gst.gov.in). Make sure you have all the required information ready before you start filling in the form.

Register Your NGO Today

What Are the Other Benefits of Being Registered Under GST?

GST is one of the most important laws that have been passed by the Indian government in recent years. It has helped improve the efficiency of the tax system and made it easier for businesses to comply with tax laws. In addition, GST registration is required for NGO (non-profit organisations) of all types in India. Here are some other benefits of that follow the GST registration required for NGO:

Use our GST calculator to Calculate GST amount to be paid before registering for GST.

-GST registration allows NGOs to collect taxes from their donors and supporters electronically

-GST registration also allows NGOs to receive input tax credit (ITC) for purchases made from registered suppliers

-GST registration allows NGOs to claim input tax credit on their expenses related to political campaigning

-GST registration makes it easier for NGOs to get financial assistance from the government

-GST registration allows NGOs to get grants from the government for their projects.

The process of Registering With GST

GST registration required for NGO is not mandatory, but it is strongly advised. The reason for this is that NGOs are considered to be a ‘subsidiary organisation’ of the government, and as such, they are required to register with GST if their total annual turnover exceeds ₹50 lakhs.

If you’re not registered with GST, you’ll have to pay taxes at a higher rate than if you are registered. Additionally, you’ll likely experience longer processing times when filing your returns, as the GST authorities will require more documentation from you.

If you’re already registered with GST, make sure that your details remain up-to-date. It’s also a good idea to keep track of any changes to your organisation – for example, if you merge with another NGO or if you acquire new assets. If there are any changes to your GST registration status that you don’t understand, contact the GST authority responsible for coordinating registrations in your state.

There are a few important things you’ll need to know if you want to be registered with GST:

  • Your NGO must have a legal entity (corporation or company) designation from the Indian government. This can be obtained through a special registration process with the Ministry of Corporate Affairs (MCA)
  • Your NGO must have a valid Tax Identification Number (TIN). This can be obtained through the MCA registration process or from the tax authority in your country of origin
  • Your NGO must file annual returns and pay taxes owed using the GST system.

 Conclusion

Are you an NGO in India and want to know if you need to register with the GST? Here’s what you need to know.

In India, NGOs are required to register with the GST unless they fall within a specific exemption. There are three types of exemptions that NGOs can fall under religious, cultural, and charitable. Religious organisations don’t have to register for GST, as they are considered a part of the regular taxation system. Cultural organisations only have to register if their income exceeds ₹50 lakh per annum (approximately $7 million), while charities don’t have to register at all.

If your organisation falls into one of these categories, then you don’t need to worry about registering for GST. However, if your organisation doesn’t fit into one of these exemptions or if it has income above ₹50 lakh per annum, then you will need to file a registration form with the GST department and pay any associated taxes.

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