TaxTMI 
TaxTMI 
2019 (8) TMI 33
X X X X Extracts X X X X
X X X X Extracts X X X X
....19AABCT1321M1ZC, stated to be a non-profit making company, is engaged in providing its members privileges and amenities such as swimming facility, gymnasium, indoor games, restaurant service, etc. 3. The Appellant sought an advance ruling under section 97 of the West Bengal Goods and Services Tax Act, 2017/ the Central Goods and Services Tax Act, 2017, (hereinafter collectively referred to as "the GST Act") on the following questions: (a) The classification and rate of tax on various services provided by the Appellant which are listed below: Sl.no. Supply name 1. Supply of food from restaurant 2. Other services provided in restaurant like booking of personal dining area 3. Supply of food at events organised in the club premises like get-togethers and parties hosted by members of the Club 4. Supply of other services being part of organising the get-togethers and parties in the club premises like valet parking charge, decoration charge, music charge, etc. 5. Other services provided by the club (b) The admissible proportion of input tax credit for services other than the supply of food. 4. The WBAAR observed that the Appellant's services could be broadly classified....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 5% with no input tax credit. (b) The Appellant is a members' club and not a proprietary club. In the instant case a group of people formed a club to provide some facilities to themselves and for this purpose they contribute to a common fund. There is a complete identity between the contributor and participator and any surplus fund resulting from excess contribution is not a profit. This is in contrary to a proprietary club where services or facilities are provided by the proprietor to the members for a subscription or other amount by way of consideration with an intention of profit making. In a proprietary club, the proprietor or the club is a separate and distinct entity from the members. A members' club should be excluded from taxation under the GST Act on the principle of mutuality. (c) The Appellant states that no person other than a member or the guests accompanied by a member or the spouse of the member can avail the facilities of the Club. The members can only pay for their guests. The guests do not have any independent right to use or pay for the club facilities. No part of surplus fund arising out of the activities of the Club is distributed to any member by w....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2006 in the matter of Bengal Rowing Club vs- Commissioner of Service Tax, Kolkata = 2017 (9) TMI 1679 - CALCUTTA HIGH COURT where the Hon'ble Calcutta High Court held that the petitioner namely Bengal Rowing Club was a members' club and the concept of mutuality applied with regards to transactions between a member and the Club and thus the petitioner was not liable to pay service tax under the Finance Act, 1994 as amended by the Finance Act, 2005. 9. The Respondent disputed the Appellant's argument regarding Bengal Rowing Club being a members' club and submitted that the club charged annual subscriptions on the members and additional charges are levied for other services like use of restaurant, swimming pool, valet parking, etc. Further, goods and services provided to club members falls within the ambit of definition of supply under the GST Act. 10. The matter is examined and written and oral submissions made before us are considered. As the ruling of the WBAAR is restricted to the question of rate of tax on food supplied at social gatherings, the discussion in this forum is also restricted to this issue only. The issue of applicability of taxation on a members&#....
X X X X Extracts X X X X
X X X X Extracts X X X X
....stionably not fall under serial no. 7(vii) of the Rate Notification. The WBAAR in its ruling is clear on the point that any food, by way of or as part of any service when supplied at the Appellant's restaurant will be taxable @ 5% only. The Appellant himself distinguished between the two supplies and sought ruling before the WBAAR on, (i) the food supplied as a part of restaurant service; and (ii) the food supplied at a social event like a members' get-together or a party. The first entry is a regular service provided by the Club and the second one is occasional by nature. 14. Under the provisions of serial no. 7(v) of the Rate Notification it is seen that any supply of food or beverage at any event, whether or not served at an outdoor or an indoor function, squarely falls under the said category. A social get-together held at the Club premises as explained by the Appellant, is "an event or a function" of occasional nature. An "event" is a planned public or social occasion whereas, a "function" means an official ceremony or a formal social event, such as a party or a special meal, at which a lot of people are usually present. The provisions of serial no.7(v) of the R....