Mutuality does not exclude member subscription and benefit services from GST where statutory deeming fiction treats members and the body separately.

Activities of a members' association involving collection of subscription, provision of member services, and conduct of educational seminars and workshops for member doctors fall within the inclusive definition of business under GST. The deeming fiction in section 7(1)(aa), treating the body and its members as separate persons, brings those member transactions within the scope of supply and displaces the mutuality objection for such dealings. Member subscription fees collected from members are therefore taxable as supply under GST.

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Issues: (i) Whether the collection of subscription and provision of services to members, and the organisation of educational seminars and workshops for member doctors, constitute business under section 2(17)(e) of the Central Goods and Services Tax Act, 2017. (ii) Whether those activities amount to supply under section 7(1)(aa) of the Central Goods and Services Tax Act, 2017, despite the plea of mutuality. (iii) Whether member subscription fees collected from members are a supply under GST.

Issue (i): Whether the collection of subscription and provision of services to members, and the organisation of educational seminars and workshops for member doctors, constitute business under section 2(17)(e) of the Central Goods and Services Tax Act, 2017.

Analysis: The provision defines business to include activities of a club, association, society, or similar body supplying facilities or benefits to its members for subscription or other consideration. On the facts found, the activities relating to collection of subscription and provision of services to members, as well as seminars and workshops for member doctors, fell within that inclusive definition.

Conclusion: Yes. Those activities constitute business under section 2(17)(e) of the Central Goods and Services Tax Act, 2017.

Issue (ii): Whether those activities amount to supply under section 7(1)(aa) of the Central Goods and Services Tax Act, 2017, despite the plea of mutuality.

Analysis: Section 7(1)(aa), inserted retrospectively and accompanied by an explanation deeming a body and its members to be separate persons, brings transactions by a person other than an individual with its members within the scope of supply for GST. The deeming provision overrides the mutuality objection for the activities in question, and the cited authorities do not alter that statutory position.

Conclusion: Yes. Those activities are supply under section 7(1)(aa) of the Central Goods and Services Tax Act, 2017, and the plea of mutuality does not apply.

Issue (iii): Whether member subscription fees collected from members are a supply under GST.

Analysis: The subscription fees were part of the consideration for the association's dealings with its members and, on the reasoning applied to the second issue, fell within the statutory deeming of supply under section 7(1)(aa).

Conclusion: Yes. Member subscription fees collected from members are a supply under GST.

Final Conclusion: The ruling holds the impugned member-related activities taxable under GST as business and supply, and rejects the mutuality-based exclusion for those transactions.

Ratio Decidendi: Where a statute creates a deeming fiction treating a body and its members as separate persons for transactions between them, mutuality cannot exclude such member-related transactions from the scope of supply, and subscription-based member benefits fall within taxable supply.

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