Circular No. 121/40/2019-GST dt.11-10-2019(Refer NN.25/2019- CTR)

• Services provided by State Government by way of grant of alcoholic liquor licence against consideration in the form of licence fee or application fee or by any other name shall neither be treatedas supply of goods nor as supply of services. Therefore, no GST shall be charged on the above specified services.

Circular No. 116/35/2019-GST dt.11-10-2019

• No GST shall be applicable on donations or gifts received from individual donors by charitable organisations involved in advancement of religion, spirituality or yoga which is acknowledged by them by placing name plates in the name of the individual donor.

For Examples:

a.) “Good wishes from Mr. Rajesh” printed underneath a digital blackboard donated by Mr. Rajesh to a charitable Yoga institution.

b.)“Donated by Smt. Malati Devi in the memory of her father” written on the door or floor of a room or any part of a temple complex which was constructed from such donation.

In each of these examples, it may be noticed that there is no reference or mention of any business activity of the donor which otherwise would have got advertised. Thus, where all the three conditions are satisfied namely the gift or donation is made to a charitable organization, the payment has the character of gift or donation and the purpose is philanthropic (i.e. it leads to no commercial gain) and not advertisement, GST is not leviable.

Circular No. 115/34/2019-GST dt.11-10-2019

• Section 2(31) of the CGST Act states that “consideration” in relation to the supply of goods or services or both includes any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person. Thus, PSF and UDF charged by airport operators are consideration for providing services to passengers.

• Thus, services provided by an airport operator to passengers against consideration in the form of Airport levies [UDF (User Development Fees) and PSF (Passenger service Fees)] are liable to GST.

Circular No. 115/34/2019-GST dt.11-10-2019(ReferNN. 22/2019-CTR dt.30.09.2019)

• The activity of lending of securities is not a transaction in securities as it does not involve disposal of securities and hence chargeable to GST.
• The lender temporarily lends the securities held by him to a borrower and lending fee is charged from the borrowers of securities which has the character of consideration and thus, this activity is taxable in GST.
• Also, GST shall be payable under forward charge by the lender and request may be made by the lender (supplier) to SEBI to disclose the information about borrower for discharging GST under forward charge. The nature of tax payable shall be IGST. However, if the service provider has already paid CGST / SGST / UTGST treating the supply as an intra-state supply for the earlier period, such lenders shall not be required to pay IGST again in lieu of such GST payments already made.