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 on association fees: membership and participation fees taxable; sponsorships taxable under reverse charge provisions.
Membership subscriptions and participation fees charged by a 12AA-registered AOP constitute taxable supplies under GST when consideration is for goods or services; lifetime membership and member-only programme fees are taxable, as are conference participation fees. Sponsorship payments received from corporate or partnership entities are taxable but taxable under the reverse charge mechanism when applicable. The three specified activities do not meet the Entry No.1 charitable-activities exemption criteria as described.