TaxTMI 
TaxTMI 
TaxTMI 
2021 (11) TMI 932
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....ndered, whether the above transaction can be considered as supply of services to its Members under GST? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT FACTS: The submissions made by the applicant are as under:- 2.1 "The applicant club is affiliated to Rotary International which is an International organization whose stated purpose is to bring together business and professional leaders in order to provide humanitarian service and to advance goodwill and peace around the world. 2.2 Applicant Club receives fees from its members: purely to defray its expenditure on meetings and communication, Rotary International (RI) per capita dues, subscription fees to the Rotarian or Rotary Regional magazine, district per capita dues, club an....
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....embers. Certainly personality development of members indirectly support services which is main objective of Rotary. Hence it is incorrect to say that Rotary doesn't provide any facility to members. 3.2 The term "business" under the GST Act includes, under Section 2(17) (e): "Provision by a club, association, society, or any other body for a subscription or any other consideration) of the facilities or benefits to its members. It is, thus, clear that the Applicant is doing "business" as defined under section 2(17) (e) of the GST Act. The subscription and fellowship dues are to be considered as consideration for the supply of such services, which are classifiable under SAC Heading 99959 under the category 'Services furnished by other membership organization'. 3.3 In the instant case applicant is not noticed to he registered as charitable trust. Also the activities undertaken by the Applicant do not conform entirely to the definition of charitable activity. Activities of training workshops or meetings for personality/ skill development out of subscription/ fellowship dues are only for members and not for people mentioned in above definition of charity. At best, the activities und....
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....and its members as different entity which is also endorsed by amendment in Finance act 2021. 3.7 Hence, in view of the above, Subscription & Fellowship dues collected from members for activities of MIS Rotary Club, Nagpur Vision are in the furtherance of "business" as termed in section 2(17) and taxable as "supply of services" in section 7(1)(a) of GST act." 04. HEARING 4.1 Preliminary e-hearing in the matter was held on 22.06.2021. Authorized Representative of the applicant, Shri. Abhay Upadhye, CA was present. Jurisdictional officer Shri. Shyam Raghute, ACST, NAG-VAT-D-10 was also present. The Authorized Representatives made oral submissions with respect to admission of their application. 4.2 The application was admitted and called for final e-hearing on 29.10.2021. Authorized Representative of the applicant, Shri. Abhay Upadhye, CA was present. Jurisdictional officer Shri. Shyain Raghute, ACST, NAG-VAT-D-1 0 was also present. Both the sides have made oral as well as written submissions. 4.3 We heard both the sides. 05. DISCUSSIONS AND FINDINGS: 5.1 We have perused the documents on record, facts of the matter and oral/written submissions made by both, the applicant as well....
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....rnment may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as- 1. a supply of goods and not as a supply of services; or 2. a supply of services and not as a supply of goods. 5.7 Vide clause 99, an amendment was proposed in the CGST Act, 2017, whereby, in section 7, in sub-section (1), after clause (a), the following clause was to be inserted and deemed to have been inserted with effect from the 1st day of July, 2017, namely: "(aa) the activities or transactions, by a person, other than an individual, to their members or constituents or vice versa, for cash, deferred payment or other valuable consideration. Explanation.-For the purposes of this clause, it is hereby clarified that, notwithstanding anything contained in any other law for the time being in force or any judgment, decree or order of any court, tribunal or authority, the person and their members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another;". 5.8 The amendment mentioned above has received the assent of the President of In....
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....ribed in this respect in this amendment. The fees/donation/subscription/amount (by whatever name called), collected by the applicant, is nothing but the "consideration" for the such "supply" and is covered by the scope of the term "business". The club and the member are two distinct persons. The principle of mutuality has no application after this amendment. All the other case laws relied upon, also do not provide any guidance on the legal situation, particularly after the amendment. 5.13 We further refer to Section 2(102) of the CGST Act which defines "services" to mean anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. The impugned activities performed by the Applicant for the welfare activities of its members which includes meetings with food and refreshment, etc., is a service rendered by the Applicant to its members as per the definition of the term 'services' mentioned above. 5.14 To be taxable under GST laws, the services must be supplied in the cou....