Club's GST Ruling Application Rejected for Non-Payment of Fee

The club's application for an advance ruling on GST liability of membership fees and other related issues was rejected by the Authority for Advance Ruling due to non-payment of the prescribed fee, as mandated by the CGST and GGST Acts. The rejection was based on the club's failure to comply with the fee payment requirement, rendering their application non-maintainable under Section 98(2) of the CGST/GGST Act, 2017.

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Issues:
1. Liability of GST on membership subscription and admission fees
2. Applicability of GST on transactions between the club and its members
3. SAC code and services description for taxable activities
4. Input Tax Credit eligibility for catering services
5. Exemption eligibility for the club

Analysis:
1. The applicant, a registered Association of Persons, sought an advance ruling on the GST liability of membership subscription and admission fees collected from members. The club argued that these fees were for covering day-to-day expenses and not for providing additional goods or services. They contended that no GST should be charged on these fees.

2. The club also raised the issue of the applicability of GST on transactions between the club and its members based on the principle of mutuality. Citing the case of State v/s. Calcutta Club Ltd., they argued that no GST should be levied on transactions between a members club and its members.

3. The club inquired about the relevant SAC code and services description for taxable activities if GST was applicable to their transactions. They sought clarity on the specific classification for their services under the GST regime.

4. Additionally, the club questioned the eligibility to claim Input Tax Credit on the tax paid for catering services used for holding member meetings and events. They sought clarification on the extent of input tax credit they could claim.

5. Finally, the club sought clarification on their eligibility for exemption from GST if their activities were deemed non-taxable. They inquired about the criteria for exemption under the GST laws.

The Authority for Advance Ruling noted that the applicant failed to pay the total prescribed fee of Rs. 10,000 as required by the relevant provisions of the CGST Act, 2017 and the GGST Act, 2017. As per Section 98(2) of the CGST Act, 2017, the application was liable for rejection due to non-compliance with the fee payment requirement.

In conclusion, the application by the club for an advance ruling was rejected under Section 98(2) of the CGST/GGST Act, 2017 for being non-maintainable. The ruling was based on the club's failure to fulfill the statutory fee payment obligations, rendering their application invalid for an advance ruling.

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