Blood donation camps don’t qualify for GST exemption, Gujarat AAR rules

Blood donation camps may help save lives, but organising them does not qualify as a charitable activity for GST exemption, the Gujarat Authority for Advance Ruling (AAR) has ruled, according to Times of India.

In the same ruling, however, the authority held that yoga camps fall within the definition of charitable activities and are therefore exempt from GST.

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The ruling came on an application filed by Sanskar Foundation, a Deesa-based NGO in Gujarat's Banaskantha district, which sought clarity on whether various welfare and training programmes conducted by it were eligible for GST exemption under the GST Act, 2017.

The foundation had sought a ruling on a range of activities, including mental health programmes, women's self-defence training, sanitation awareness initiatives, de-addiction seminars, yoga camps, blood donation drives and road safety programmes.

The AAR held that several services undertaken under government-sponsored welfare schemes would be exempt from GST. These included self-defence and arms training for women, skill development programmes, mental health initiatives, de-addiction awareness seminars, and training related to sanitation and cleanliness.

On yoga camps, the authority ruled in favour of the NGO, holding that the activity fell within the definition of charitable activities.

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“The definition of charitable activities include advancement of religion, spirituality or yoga. Since the applicant is registered under section 12AB of the Income Tax Act, and is providing activities by way of conducting yoga camps, which comes under the ambit of charitable activities, the applicant is eligible for exemption from payment of GST in view of Entry No 1 of the Notification No 12/2017- Central Tax (R) dated June 28, 2017.”

The authority, however, rejected the foundation's contention that blood donation camps should be treated as preventive healthcare activities and consequently qualify for the charitable-activity exemption.

The NGO had argued that blood donation drives involve health screening, help detect diseases, ensure a safe blood supply and promote healthy lifestyles.

The AAR disagreed, saying the medical tests conducted before blood donation are primarily intended to ensure the safety of both the donor and recipient rather than provide preventive healthcare.

“The pathological examination of blood for transfusion transmissible infections namely HIV/AIDS, hepatitis B, hepatitis C, syphilis, and malaria is conducted as per the National Blood Transfusion Council (NBTC) guidelines, so that infections are not transmitted from the donor to the recipient. Further, other mini-physical check-ups such as blood pressure, pulse rate, body temperature, haemoglobin levels, weight measurement are ancillary to the donation of blood and is basically a safety protocol to protect the donor. It cannot be stretched to be brought under the definition of preventive health. We, therefore, are of the view that organising blood donation camp does not come under the ambit of charitable activities…”

The ruling means that while several welfare-oriented programmes conducted by the foundation can qualify for GST exemption under specified conditions, blood donation camps do not get the same treatment merely because they involve health checks and contribute to the availability of blood for transfusion.