Order date: 21 September 2022\

Facts

• The Appellant, M/s Jayshankar Gramin and Adivasi Vikas Sanstha, is a charitable trust registered under Maharashtra Public Charitable Trust Act, 1950, under Societies Registration Act, 1860, and under Section 12AA of the Income Tax Act. 1961.
• The trust rendered services under "One stop crises centre" scheme introduced by Ministry of Women and Child Development to destitute women who are litigating divorce, or homeless, or the victims of domestic violence. Further, a grant of amount up to Rs. 2,00,000/- per month was approved wherein the trust will only act as an implementing agency and will use grant amount in specified manner. 
• The amount was granted in the nature of reimbursement. If monthly expenses incurred are less than the said limit in that case, the lesser amount which is incurred actually is granted.
• Aggrieved by the decision of Maharashtra AAR that GST is leviable on the activity of trust, this appeal is filed.

Issue 

• Whether GST is applicable on grant received by the trust under “One Stop Crises Centre scheme”?

Order

• The MAAR observed that as per Section 2(102) of the CGST Act, the term "services", which cover any activities other than those which involve goods, money and securities. As the activities undertaken by the Appellant do not entail supply of any goods, money, or securities to their recipient, the activities of the Appellant would aptly be construed as services.
• Further, it was opined that in absence of any consideration the subject transactions/activities undertaken by the Appellant, wherein they are providing various assistances, such as food, shelter, legal assistances, medical assistances, etc. to the destitute women, would not be construed as supply in terms of Section 7(1)(a) of the CGST Act, 2017, which stipulates that for any transactions/activities to be considered as supply, there has to be an element of "consideration. In absence of the same, such transactions/activities will not be considered as "supply".
• Further, the amount reimbursed by the government to the Appellant is in the nature of subsidy, hence it is concluded that the said reimbursement amount cannot be construed as "consideration" in terms of definition provided under Section 2(31) of the CGST Act.
• Thus, it was held that GST is not leviable on the instant activity of the Trust.