is GST registration equired for NGO non-profit organization?

Answer By law4u team

Yes, GST (Goods and Services Tax) registration is required for NGOs (Non-Governmental Organizations) and non-profit organizations under certain circumstances. Here are some key points to consider: Threshold Limit: If the annual aggregate turnover of the NGO exceeds the threshold limit set by the GST authorities, GST registration becomes mandatory. As of September 2021, the threshold limit for GST registration is INR 40 lakhs for most states in India. However, some states have a lower threshold of INR 20 lakhs. Interstate Supply: If the NGO engages in the supply of goods or services across state borders, GST registration is mandatory, regardless of the turnover. Voluntary Registration: NGOs can also opt for voluntary GST registration, even if they do not meet the threshold requirements. This allows them to avail themselves of the benefits of being a registered taxpayer and claim input tax credits. It is important for NGOs to consult with a qualified chartered accountant or tax professional to understand the specific GST registration requirements applicable to their organization based on its activities and turnover. They can provide accurate guidance and assist with the registration process, if necessary.

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