Entities Claiming Charitable Status under GPU cannot Exceed 20% of Gross Receipts from Commercial Activities: Madras HC

The Madras High Court has ruled that entities claiming charitable status under the Goods and Services Tax (GST) regime cannot exceed 20% of their gross receipts from commercial activities. This decision clarifies the scope of commercial activities permissible for charitable organizations under GST. The court emphasized the need to maintain the integrity of charitable status and prevent misuse of exemptions available under GST for entities engaging in significant commercial activities. The ruling is expected to have implications for organizations seeking GST exemptions based on their charitable nature.