GST Liability for Club Members' Contributions: Taxable Person, Supply of Services

The Authority determined that contributions from members for administrative expenses constitute a supply of services under GST. The applicant was classified as a taxable person, with GST liability resting on the organization rather than individual office bearers. Additionally, the collection and spending of funds under a common pool for members' benefits were deemed to be a supply of services provided by the club.

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Issues Involved:
1. Whether contributions from members for administrative expenses amount to a "supply" under GST.
2. Classification of such contributions as supply of goods or services.
3. Determination of the applicant as a taxable person under GST.
4. Identification of the liable person under GST when office bearers change annually.
5. Whether collection and spending of funds under a common pool constitute a "supply."
6. Classification of such collection and spending as supply of goods or services.

Detailed Analysis:

Issue 1: Contributions as Supply
The Authority examined whether contributions from members for administrative expenses, including weekly meetings and refreshments, constitute a "supply" under GST. The Authority concluded affirmatively, stating that the applicant and its members are distinct entities. The activities undertaken by the applicant, such as promoting ethical standards and community service among members, are considered services provided to members. The membership fees collected are seen as consideration for these services.

Issue 2: Classification as Goods or Services
Since the contributions were deemed to be a supply, the next question was whether this supply constitutes goods or services. The Authority classified it as a supply of services. The membership fees are paid for the services that the club provides to its members, including administrative support and organizing meetings.

Issue 3: Applicant as a Taxable Person
The Authority affirmed that the applicant is a taxable person under the GST Act, subject to the provisions of Section 22, which pertains to the threshold limit for registration. The applicant's activities fall under the definition of "business" as per Section 2(17) of the CGST Act, which includes the provision of facilities or benefits to members for a subscription or other consideration.

Issue 4: Liable Person Under GST
Regarding the liability for GST when office bearers change annually, the Authority clarified that the applicant itself is liable to pay GST, not the individual office bearers. The liability remains with the organization, ensuring continuity despite changes in office bearers.

Issue 5: Common Pool Collection as Supply
The Authority addressed whether the collection and spending of funds under a common pool for members' benefits constitute a "supply." It affirmed that such activities do constitute a supply. The funds collected are used to provide services to members, fitting the definition of "supply" under the GST Act.

Issue 6: Classification of Common Pool Activities
Finally, the Authority classified the collection and spending of funds under the common pool as a supply of services. The contributions are used to facilitate various activities and services for members, thus qualifying as services provided by the club to its members.

Conclusion:
The Authority concluded that the contributions from members for administrative expenses, including meetings and refreshments, amount to a supply of services under GST. The applicant is a taxable person, and the liability for GST rests with the organization, not the individual office bearers. The collection and spending of funds under a common pool also constitute a supply of services.

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