This membership would be taxable since the total value of the discounts is significant ⦠The meeting with other NGOs or corporates is for the purpose of raising funds for the charitable objects and also showing to the corporate the effective projects for their Corporate Social Responsibility spending. Health services, cosmetic & plastic surgery, leasing renting or hiring of motor vehicles, vessels or aircraft referrers to in clause (a) of clause (aa) except when used for the purpose specified there in, life insurance and health insurance. FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, MAHARASHTRA, (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017). Rotary Club of Mumbai Queens Necklace, it is observed that M/s. As discussed in the course of hearing, the club invites various speakers (for which no considerations paid to them or charged to members) in its meetings. Therefore, in order to ascertain the responsibilities and privileges of the Committee and their members, the department searched the literature available on Internet, it has come to department’s notice that Rotary clubs are involved in two kind of activities:-. 186/18-19 and 091/18-19 and schedules of the Balance sheet attached with the application by M/s. The club accounts are kept separate from the charitable activities which is carried out under the registered charitable Trust both under the Public Trust Act as well as Income Tax Act. Kindly consult the professional before forming any opinion. The club has submitted the audited accounts of Rotary Club of Bombay Queens Necklace Charitable Trust under whose aegis all the charitable projects are carried out. So prima facie there appears a leavy of GST on the issue on above said issue. Health services, cosmetic & plastic surgery, leasing renting or hiring of motor vehicles, vessels or aircraft referrers to in clause (a) of clause (aa) except when used for the purpose specified there in, life insurance and health insurance. The club which is nothing else but group of service oriented individuals who have come together only collects the budgeted expenses from its members to incur the meeting expenses, administrative expenses and payment to Rotary International. Copyright © TaxGuru. Reply to this comment . Rotary Club of Mumbai Queens Necklace are into social services like all other Rotary clubs. Thus, any membership fee collected by the lions Club from its members will definitely be understood as ‘consideration’ as the same has been paid for supply of services”. Thus, the Appellant is not doing any business as envisaged under Section 2(17) of the. Hence on going through the above information, it appears that the Club & Association does not provide only Social Services as an NGO, but also have other functions relating to Personal Functions which clearly amounts to furtherance of business. 18 June 2015 : Circular No. Health services, cosmetic & plastic surgery, leasing renting or hiring of motor vehicles, vessels or aircraft referrers to in clause (a) of clause (aa) except when used for the purpose specified there in, life insurance and health insurance. 0 Comments Add a Comment. Gifts and donations are not subject to GST, even though donors receive âtokensâ. 18% GST on flat owners on monthly RWA fee of over Rs 7,500 The government recently said flat owners who pay more than Rs 7,500 monthly maintenance fees to resident welfare associations, or RWAs, would be charged 18% Goods and Services Tax, PTI reported. Comments . 7,000 (doesnât contain exempt goods or services) to a member, in such case GST is payable on Rs. We once again reiterate that the club has not been formed to provide any supply of goods or services to the members. To know more details, kindly watch the video by CA Bimal Jain on “No GST on Membership Fees and Admission Fees collected by Club from its Members”- https://www.youtube.com/watch?v=msCUC5QtqOU. In other words, whether the transaction between the Appellant and its members can be construed as supply as envisaged under section 7 of the CGST Act, 2017, or otherwise. 1.1:- The questions/ issues before Your Honor for determination is whether the amount collected as membership subscription and admission fees from members is liable to GST as supply of services? The copy of such Banquet charges and Catering charges arc enclosed at. The (applicant club as per the facts put up before us does not render any “Supply” for the purpose of GST Act.”. cenvat credit can not be availed, we would like to draw special attention to section 17 (b): ” (b) The following supply of goods or services or both. The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by Rotary Club of Mum bai Queens Necklace, the applicant, seeking an advance ruling in respect of the following questions. Through regular meetings and events, the members of the Club will connect with other leaders towards changing the world and expand their leadership and professional skills. 2) If receipts are liable to GST can the club claim input tax credit of the tax paid on banquet and catering services for holding members meetings and various events? It is a not-for-profit institution and neither has it rendered commercial service to its members nor does it render services to outsiders for a fee. Hence, the same shall not be taxable. The details of speakers at some of the meetings are as under: We reiterate that the said activities are not for transforming members into leaders generally but are for members to become effective while carrying out various social service activities.  It is also said that –Rotary Club Membership allows members to sit next to people with whom he/she may have to pay $250 an hour to meet” This clearly shows that there is forthernanece of business involved. On the contrary, from tax invoice No. Above circular has not considered the definition of “supplier” as well as “recipient” before taxing a transaction u/s 7(1)(a). If the impugned activities of the Appellant were to be supply, then the membership fees collected by the Appellant, which is purely in the nature of a reimbursement for the meetings and administrative expenditures incurred by the Appellant to sustain and propagate their inherent objectives and programs, would be subject to the double taxation as the amount spent towards the meetings and administrative expenditures is already subjected to GST at the hands of the suppliers of ⦠2. However, M /s Rotary Club of Mumbai Queens Necklace have not submitted the copies of Article 13 section 7 in their application. Your email address will not be published. There are no funds used for any social cause. Rate is 18% (CGST 9%+SGST 9%) As ICAI has directed its members to add 18% tax on fees/ subscription there is no question of payment in reverse charge by institute. The Club is an autonomous unit which collects its fees from its members to meet its administrative costs and to manage its activities. SOCIETY, CLUB AND ASSOCIATION REGISTRATION IN KENYA: Society registration in Kenya compliance ensures that all societies must be registered by the registrar of societies. c) Other Administration expenses like printing, stationery, audit fees etc. Club in normal parlance is understood to provide goods or services to its members such as recreation, sports etc. VINOD LOHIA 22/03/2018 11:13 AM. Club receiving Reimbursements from its members: These are purely collected to defray its expenditure on meetings and communications. In order to facilitate the meetings and administration, reimbursements are collected from members. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression `GST Act’ would mean CGST Act and MGST Act. Posted On December 24th, 2018 . where it is obligatory for an employer to provide the same to its employees under any law for the time being in force. 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