Lion Club of Poona Kothrud ., In re
- Court:
- Appellate Authority for Advance Ruling
- Bench:
- Maharashtra
- Date:
- April 23, 2019
- Type:
- Advance Ruling
- Members:
- Borhade, Pankaj Kumar
Subject
Provision by club, association etc (for a subscription) of the facilities/benefits to its members will attract GST irrespective of the fact that such club is not set up with the objective of providing any goods or service to its members
Summary
In the instant case, the AAR has erred by construing the term ‘facilities and benefits’ only to the extent of recreation, sports, food etc., by going beyond the text of the legislation. The CGST Act has expressly defined the term business…
Judgement
A. Lions Clubs are autonomous units those collect fees from their members in order to conduct social activities and meet their administrative costs. Similarly, Lions Districts collect fees from Clubs and Cabinet Members to manage District activities. B. It was felt by M/s Lions Club of Poona, Kothrud (hereinafter referred to as the respondent) that under the principle of mutuality and since the fe…