GST Case Law

IS MEMBERSHIP FEE, ANNUAL SUBSCRIPTION AND ANNUAL FEE COLLECTED FROM MEMBERS IS LIABLE TO GST ?

MEMBERSHIP FEE, ANNUAL SUBSCRIPTION AND ANNUAL FEE COLLECTED FROM MEMBERS IS LIABLE TO GST

MAHARASHTRA AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES TAX

Case Name: M/s. The Poona Club Ltd. (GST AAR Maharashtra)
Advance Ruling No. GST-ARA- 123/2019-20/B-12
Date of Judgement/Order: 31/01/2022

 

Important Para 5.4.8

Therefore, in view of the amended Section 7 of the CGST Act, 2017, we find that the applicant club and its members are distinct persons and the fees received by the applicant, from its members are nothing but consideration received for supply of goods/services as a separate entity. The principles of mutuality, which has been cited by the applicant to support its contention that it is not rendering any supply to its members and GST is not leviable on the fees collected from its members, is not applicable in view of the amended Section 7 of the CGST Act, 2017 and therefore, the applicant has to pay GST on the said amounts received from its members.

ORDER

(Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
For reasons as discussed in the body of the order, the questions are answered thus –

Question 1: – Whether membership fee collected from members at the time of giving membership is liable to tax under CGST/SGST Act?
Answer: – Answered in the affirmative.

Question 2: – Whether the annual subscription and annual games fee collected from members of club is liable to tax under CGST/SGST Act?
Answer: – Answered in the affirmative.

 

(Team) LTG Publication Private Limited

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