Charitable Institution’s Activities Prima Facie Not Classified as Supply or Business Under CGST Act: Delhi HC

The Delhi High Court ruled that the activities of charitable institutions are prima facie not classified as "supply" or "business" under the Goods and Services Tax (CGST) Act. The case examined whether services provided by charitable institutions, such as educational, health, and religious services, fall within the definition of "business" or "supply" under GST. The Court found that these activities, aimed at promoting welfare and not intended for profit-making, are exempt from GST. This ruling provides clarity for charitable organizations, affirming that their non-commercial activities are not subject to GST. The decision is expected to reduce the regulatory burden on charitable institutions, ensuring that they can continue their work without additional tax liabilities.