Ruling by: Appellate Authority for Advance Ruling, West Bengal
Facts
The appellant is affiliated to International Inner Wheel. The membership of the applicant can only be availed against payment of annual membership fees, renewable annually. Only the members are granted various facilities and/or benefits, enabling them to attend conventions/meetings for the furtherance of the objectives of the organisation. Such facilities/benefits are not available to the non-members of the organisation.
Issue
Whether the activities that are undertaken by applicant may be termed as ‘business’ and ‘supply of services’ as defined under the West Bengal Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017?
Decision
The LD. AAR had ruled that applicant’s activities involve the supply of services classifiable under SAC Heading 99959 against consideration received in the form of subscription and membership fees. Services classifiable under SAC Heading 99836 are also supplied. Feeling aggrieved, the appellant filed an appeal.
The Ld. AAAR had observed that definition of “business” in section 2(17) of GST Act states that “business” includes provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members. The term ‘person’ as defined in section 2(84) of the GST Act includes an association of persons or a body of individuals, whether incorporated or not, in India or outside India. Further, Schedule II of GST Act enumerates activities which are to be treated as supply of goods or as supply of services. It states in para 7 that supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration shall be treated as supply of goods.
Thus, a conjoint reading of the above provisions of the law implies that supply of services by an unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration shall be treated as supply of services.
