Final answer:
No, as they are exempt from GST. Not-for-profit organizations engage in activities for social welfare, not for commercial purposes. This exemption allows them to allocate resources effectively to support their causes.
Step-by-step explanation:
No, as they are exempt from GST. Not-for-profit organizations are generally exempt from Goods and Services Tax (GST) in many countries, including Canada, Australia, and India.
The main reason for this exemption is that not-for-profit organizations primarily engage in activities for social welfare or community benefit, rather than for commercial purposes. They do not aim to make a profit and therefore are not subject to the same tax obligations as for-profit businesses.
This exemption allows not-for-profit organizations to allocate their resources more effectively to support their charitable or social causes, as they are not burdened with the administrative work and costs associated with GST registration and compliance.