This circular provides clarification on whether GST is leviable on donations or gifts received by charitable organisations, including those engaged in advancement of religion, spirituality, or yoga, where such donations are acknowledged by displaying the name of the donor within the premises.

It clarifies that individual donors often make donations or gifts to charitable institutions such as religious bodies, schools, hospitals, orphanages, or old age homes, and the recipient institutions may display the donor’s name or install name plates as a gesture of gratitude. Where such display is merely an expression of appreciation or public recognition of philanthropy, and not intended to advertise or promote the donor’s business, it does not amount to a supply of service for consideration.

The circular emphasizes that in such cases there is no quid pro quo, as the charitable organisation is under no contractual or commercial obligation to provide any service in return for the donation. Accordingly, the donation retains its character as a voluntary contribution and does not attract GST.

Illustrative examples are provided, such as mentioning “Good wishes from Mr. Rajesh” on donated items or acknowledging a donation in memory of a person on parts of a charitable or religious premises. It is clarified that GST is not leviable where all three conditions are satisfied: the payment is a genuine donation or gift, it is made to a charitable organisation, and the acknowledgment does not result in commercial advertisement or business promotion for the donor.