Non-Governmental Organisations (NGOs) play a significant role in driving social welfare, education, healthcare, disaster relief, and rural development across India. While NGOs work on a “non-profit” basis, their financial activities still come under the purview of Indian taxation laws—including the Goods and Services Tax (GST).
If an NGO crosses certain financial thresholds or engages in specific activities, it must register under GST just like any other organization. Understanding these rules is essential for smooth compliance and uninterrupted operations. This article explains everything about GST registration for NGOs, including eligibility, process, documents, benefits, and common mistakes to avoid.
What is GST Registration for NGOs?
GST registration is a unique identification number provided by the Government of India to organizations that engage in the supply of goods or services. When an NGO conducts activities such as providing training, consultancy, selling goods, organizing events, or receiving grants linked to services, GST laws may apply.
Even though NGOs work for charitable purposes, GST applies to them if their services fall under “business transactions” as per GST definitions, or if they exceed certain turnover limits.
Is GST Mandatory for NGOs?
GST registration becomes mandatory for NGOs under the following conditions:
1. Annual Turnover Above Prescribed Limit
If the annual turnover of an NGO exceeds:
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₹20 lakh (for most states), or
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₹10 lakh (for special category states),
it must register under GST.
2. Supply of Goods or Services
NGOs involved in activities like:
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Sale of books, handicrafts, goods
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Training programs
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Consultancy services
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Organizing conferences or events
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Renting property
are required to register if these services are taxable.
3. Inter-State Supply
If an NGO makes inter-state supply of goods or services, GST registration becomes mandatory regardless of turnover.
4. Online Activities
If an NGO provides online services through:
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E-commerce platforms
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Online training
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Digital workshops
GST Registration Online is compulsory once taxable supplies are made.
5. Foreign Funding Linked to Services
If an NGO receives foreign contributions tied to a deliverable service, GST may apply.
Which NGO Activities Are Exempt from GST?
Some charitable activities are exempt under GST. These include:
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Activities for public health such as counseling, awareness campaigns
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Education for underprivileged children
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Public safety activities
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Disaster management services
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Training programs related to skill development for the poor
If an NGO conducts only exempt charitable activities, GST registration is not required.
Benefits of GST Registration for NGOs
Even though compliance may seem complex, GST registration offers several advantages:
1. Better Transparency and Credibility
Registered NGOs enjoy higher trust from:
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Government departments
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Grant agencies
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CSR donors
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International organizations
GST registration highlights the organisation’s legal compliance.
2. Eligibility for Grants and CSR Funding
Many government and corporate donors prefer NGOs that are GST compliant. Some funding applications even require GSTIN details.
3. Input Tax Credit (ITC)
NGOs can claim ITC on:
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Event expenses
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Professional services
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Rent
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Travel and logistics
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Purchase of goods
This reduces the overall operational cost.
4. Smooth Financial Management
GST allows NGOs to maintain:
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Better budgeting
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Accurate accounting
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Clear tax records
This helps in audits, FCRA compliance, and CSR reporting.
Documents Required for GST Registration for NGOs
To register an NGO under GST, the following documents are required:
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PAN card of the NGO
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Registration certificate (Societies Act/Trust Act/Companies Act Section 8)
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PAN and Aadhar of authorized signatory
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Proof of business address (rent agreement/electricity bill)
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Bank account details (passbook or cancelled cheque)
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Authorization letter or board resolution
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NGO’s constitution documents (Trust Deed, MOA, AOA)
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Digital Signature Certificate (for Section 8 companies)
Step-by-Step Process for GST Registration for NGOs
Here is the simple process NGOs can follow:
Step 1: Visit GST Portal
Go to www.gst.gov.in → click on “Register Now”.
Step 2: Enter Basic Details
Provide:
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NGO name
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PAN
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Email ID
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Mobile number
An OTP verification will follow.
Step 3: TRN Generation
A Temporary Reference Number (TRN) will be generated.
Use it to open the application form.
Step 4: Fill Part-B of the Form
Enter:
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NGO details
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Address
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Authorized signatory details
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Business activity
Step 5: Upload Documents
Attach all required documents in the prescribed format.
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Step 6: Verification with DSC or E-Sign
For Section 8 companies, digital signature is mandatory.
Step 7: GSTIN Approval
Once verified by the GST officer, the NGO receives:
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GSTIN number
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GST registration certificate
The total processing time is usually 3–7 working days.
GST Compliance Requirements for NGOs
Once registered, NGOs must comply with the following:
1. Filing GST Returns
Registered NGOs must file:
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GSTR-1 (sales return)
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GSTR-3B (monthly summary return)
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GSTR-9 (annual return)
Ignoring filing may result in penalties.
2. Maintaining Proper Accounts
NGOs must maintain:
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Books of accounts
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Donation records
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Expenditure statements
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GST invoices
3. Issuing GST-Compliant Invoices
Invoices must include:
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GSTIN
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HSN/SAC code
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Tax rate
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Value of supply
4. Paying GST on Taxable Supplies
GST must be paid on any taxable goods or services provided.
Common Mistakes NGOs Should Avoid
Many NGOs face issues due to a misunderstanding of GST regulations. Avoid these mistakes:
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Assuming charity automatically means GST exemption
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Not issuing GST invoices for training programs or goods
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Missing monthly GST return deadlines
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Failing to claim the eligible Input Tax Credit
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Treating CSR funds as taxable receipts (only taxable when linked to service)
Conclusion
GST registration for NGOs is not just a legal requirement; it is a vital step toward transparency, credibility, and financial efficiency. While many charitable activities are exempt from GST, NGOs that supply training, consultancy, goods, events, or online services must comply with GST rules. If you need any help, hire an expert team the Kcorp Tax team to clear your doubts.
With proper understanding and timely compliance, NGOs can focus on what matters most: creating social impact and serving communities.