Published Online:October 2024
Product Name:The IUP Journal of Law Review
Product Type:Article
Product Code:IJLR041024
Author Name:Sushmitha Senthilkumar, Madhumitha Senthilkumar and P Velraj
Availability:YES
Subject/Domain:Law
Download Format:PDF
Pages:45-64
A common misconception exists that all charitable activities are inherently philanthropic and automatically exempt from taxation. This study explores whether charitable trusts can be categorized as businesses within the Goods and Services Tax (GST) framework. The GST system in India, designed to streamline and regulate taxation, has given rise to significant concerns and uncertainties regarding their application to charitable organizations. The study examines the legal dimensions surrounding the treatment of charitable trusts under GST by analyzing relevant legislations and specific cases. It seeks to provide a nuanced understanding of the implications of classifying charitable trusts as businesses for taxation purposes. Additionally, the study highlights how charitable trusts are misused for tax avoidance.
Humans have a natural tendency toward altruism, which motivates them to think well of others and do them good. In our nation, charitable and religious trusts have played a helpful role. Their existence and historical context are rooted in the underlying cultural characteristics that are peculiar to our culture.