Facts: M/s Ecosan Services Foundation (“the Applicant”) is an entity registered under section 12AA of the Income-tax Act, 1961 engaged in providing services relating to sanitation to various entities inducing Non-profit Organization (NGO) registered as trust having registration under section 12AA of the Income-tax Act, 1961. It is a non-profit organization with a vision to promote ecological sanitation and sustainable sanitation practices along with efficient water & waste water management practices in India. The Appellant is a state government recognized Key Resource Centres (KRC) under Ministry of Drinking Water and sanitation to conduct training workshops facilitate knowledge sharing and learning etc. In order to render services amounts are received from various companies and persons as grants or donations. On this factual matrix the Appellant sought advance ruling on the following issue.
Issues Involved: Whether any grant or donation received towards performing specific services towards preservation of environment amounts to provision of service and liable to GST?
Held: The Hon'ble AAR Maharashtra vide its Ruling No. GST-ARA-70/2018-19/B-163 dated 19 December, 2018 observed that services provided by Applicant amounts to provision of service. Further, grants or donations received towards provision of services would be considered as received towards activities relating to preservation of environment as specified in definition at 2 (r) of Notification No. 12/2017- Central Tax (Rate) dated June 28,2017 and therefore such grants or donations are covered by exemption Notification entry at Sr. No. 1 of said notification.
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