GST on fee collected by 12AA AOP/BOI from its members

[Mayank Jain]

Dear Experts

An association of persons (related to pathology) are registered under GST Act, Societies Registration Act,1860 and also holding Sec 12AA certificate under Income Tax Act. Which of the following Income/outward supplies will attract GST and which will be exempt:

1. Fee charged for making lifetime members.

2. Participation fee charged from members for participating in monthly programmes for the enhancement of quality of member pathologists in performing their lab diagnosis. (Non members not allowed to participate).

3. An annual conference in which anyone from medical pathologist can attend, whether a member or not of such AOP, so one has to pay the participation fee. Also medical companies can sponsor the event or be Co-sponsors by paying the sponsorship fee. Whether GST needs to be charged on such sponsorship fee or RCM provisions shall apply as per Notification 13/2017 dated 28.06.2017.

Can the above services rendered by such AOP are eligible for being covered under Entry No.1 of exemption notification 12/2017 dated 28.06.2017 relating to services rendered by an entity registered under Section 12AA of Income Tax Act, 1961 by way of charitable activities.

Will they be covered in the ambit of ‘charitable activities’ as defined in 2(r) of the Notification No.12/2017 dated 28.6.2017?

If possible please do site judgements (even if they relate to erstwhile Service Tax laws) other than IMA judgement) in support of your valuable views.

Thanks & Regards

Mayank Jain

AI Summary

GST Applicable on Membership Fees, Program Participation, and Conference Sponsorships; Consider Entry 77A for Exemption An association of persons registered under the GST Act and holding a Section 12AA certificate inquired about GST applicability on various fees. The fees include charges for lifetime membership, participation in monthly programs exclusive to members, and an annual conference open to all medical pathologists with sponsorship from medical companies. The response indicates that GST is payable on all these fees. The sponsorship fees are subject to GST under reverse charge provisions. The activities do not qualify for exemption under Entry No.1 of Notification 12/2017, but Entry No. 77A should be considered. These views are preliminary and not professional advice.