Association member collections treated as taxable services, with turnover counted for compulsory GST registration.

An alumni association's collections from members and receipts for member-related activities were treated as consideration for services, because the association provided identifiable facilities and benefits such as networking, meetings, seminars, reunions, publications and websites. The Authority applied the GST scope of supply to club or association services and treated the association and its members as separate persons; the activity therefore constituted a taxable supply of services. As those taxable receipts were included in turnover, and the turnover exceeded the compulsory registration threshold, the association was held liable to obtain GST registration.

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Issues: (i) Whether the amounts collected by the alumni association from its members and the receipts from the institute for member-related activities constitute a supply of services under GST. (ii) Whether the association is liable to GST registration on account of its turnover crossing the prescribed threshold.

Issue (i): Whether the amounts collected by the alumni association from its members and the receipts from the institute for member-related activities constitute a supply of services under GST.

Analysis: The association is a registered society whose objects, memorandum and bye-laws show that it provides a forum for members, facilitates networking, conducts meetings, seminars, reunions, publications, websites and other activities for the benefit of members. Membership fee and event-wise collections are paid for these activities, and the members access the services and facilities of the association. On this basis, the activities fall within the inclusive definition of business, and the collection of membership fee and other charges represents consideration for services supplied by the association to its members. The ruling also treats the association and its members as separate persons for GST purposes and applies the statutory scope of supply to club or association services.

Conclusion: The activities amount to a supply of services under GST and are taxable.

Issue (ii): Whether the association is liable to GST registration on account of its turnover crossing the prescribed threshold.

Analysis: Since the association's receipts arise from taxable supplies of services, its turnover is counted for registration purposes. The accounts placed before the Authority showed turnover above the threshold prescribed for compulsory registration, and the statutory requirement to obtain registration followed from the taxable nature of the activity and the quantum of receipts.

Conclusion: The association is liable to be registered under GST.

Final Conclusion: The ruling holds that the alumni association's member-related collections are taxable supplies of services and that the association must obtain GST registration because its turnover exceeds the prescribed limit.

Ratio Decidendi: Where an association provides identifiable facilities or benefits to its members for membership fees or other charges, such activity constitutes a supply of services in the course of business for GST purposes and the resulting turnover is relevant for compulsory registration.

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