Club /Society members needs to pay GST

As per the following FAQ’s on GST by CBEC (Meaning and Scope of Supply) , Club/ Society member needs to pay GST on the Services availed by them from such Society or Club. Thus the govt has overridden the Mutuality concept under which services provided by club / society to its members were not chargeable as they were treated one and same person. Thus Club / Society can not provide services to itself. But now the services provided by Society / Club to its members will be treated as Business and they needs to pay GST.

Q 12. Whether provision of service or goods by a club or association or society to its members will be treated as supply or not?

Ans. Yes. Provision of facilities by a club, association, society or any such body to its members shall be treated as supply. This is included in the definition of ‘business’ in section 2(17) of MGL.

Section 2(17)(e) of Model GST Law :-

“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, as the case may be;

Education Guide on Goods & Service Tax (GST)