Appellant's Membership Fees and Souvenirs Deemed Supply of Services and Goods under GST Act

The Appellant's activities were deemed to constitute a supply of services and goods under the GST Act by the Advance Ruling Authority. The membership fees collected were considered a supply of services as they provided exclusive benefits to members. Souvenirs distribution was classified as a supply of goods, contrary to the Appellant's claim. The Authority found insufficient evidence of charitable activities to support the Appellant's assertions. The West Bengal Authority for Advance Ruling's decision was upheld, dismissing the appeal.

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Issues Involved:
1. Whether the activities of the Association of Inner Wheel Clubs of India can be termed as "business" and "supply of services" under the GST Act.
2. Whether the membership fees and other income of the club are subject to GST.
3. Whether the distribution of souvenirs constitutes a supply of goods.
4. Whether the activities of the club qualify as charitable activities under GST provisions.

Issue-wise Detailed Analysis:

1. Definition of "Business" and "Supply of Services":
The Appellant sought a ruling on whether their activities could be classified as "business" and "supply of services" under the GST Act. The Advance Ruling Authority determined that the Appellant's activities involve the supply of services classifiable under SAC Heading 99959 against consideration received in the form of subscription and membership fees. Additionally, services classifiable under SAC Heading 99836 are also supplied. The sale of souvenirs was considered a supply of goods. The nature of supply for miscellaneous income was to be determined by the nature of service.

2. Membership Fees and GST Applicability:
The Appellant argued that the membership fees collected are used entirely for funding charitable work and administrative expenses in furtherance of the organization's objectives. They contended that the privilege to attend club programs does not provide personal benefits to members but furthers the organization's objectives. However, the Authority noted that membership can only be availed against payment of annual fees, which grants various facilities and benefits exclusive to members, thus constituting a supply of services. The GST Act defines "business" to include the provision of facilities or benefits by a club to its members for a subscription or any other consideration.

3. Distribution of Souvenirs:
The Appellant claimed that souvenirs are not sold but distributed free of cost to members or non-members. Despite this, the Advance Ruling Authority categorized the distribution of souvenirs as a supply of goods. The Authority found no evidence to support the claim that souvenirs were distributed without consideration.

4. Charitable Activities:
The Appellant did not provide specific details of charitable work or whether their activities fall under the "charitable activities" as defined in the GST Act. The balance sheet submitted lacked indications of expenses towards social work, except for a relief fund for cyclone expenses. The Authority concluded that the club's main activity is not charitable work, as claimed by the Appellant, and there is no segregated fund for such purposes.

Conclusion:
The Authority upheld the Advance Ruling, finding no infirmity in the decision that the Appellant's activities constitute a supply of services and goods under the GST Act. The appeal was dismissed, and the ruling by the West Bengal Authority for Advance Ruling was affirmed.

Disposition:
The appeal fails and stands disposed of accordingly. A copy of the order was sent to the Appellant for information.

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