GST on Services of Membership Organisations
Here we have analysed GST on Services of Membership Organisations in India
Whether GST is leviable on unincorporated Club or Association ?
As per Section 2(84) of CGST Act 2017“person” includes—
(f) an association of persons or a body of individuals, whether incorporated or not, in India or outside India;
As per Section 2(17) of CGST Act 2017“business” includes—
(e) 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;
[See section 7]
ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICES
7. Supply of Goods
The following shall be treated as supply of goods, namely:—
Supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration.
Hence GST will be levied on goods or services supplied by an incorporated / unincorporated club , associates or association or body of persons to its member .
Is there any GST on Membership of an organizations?
Group 99951 : Services furnished by business, employers and professional organizations Services
999511 : Services furnished by business and employers organisations
999512 : Services furnished by professional organisations
Group 99952 : Services furnished by trade unions
999520 : Services furnished by trade unions
Group 99959 : Services furnished by other membership organisations
999591 :Religious services
999592 :Services furnished by political organizations
999593 :Services furnished by human rights organisations
999594 :Cultural and recreational associations
999595 :Services furnished by environmental advocacy groups
999596 :Services provided by youth associations
999597 :Other civic and social organisations
999598 : Home owners associations
999599 : Services provided by other membership organisations nowhere else classified
What are the GST rates on services by Membership organizations?
GST rates for Services of membership organizations are CGST 9% and SGST 9% / IGST @ 18%
Is there any exemption from GST to services provided by trade unions/ Membership Organisations ?
Yes. There is Exemption from GST to following services :
Service by an unincorporated body or a non-profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution –
(a) as a trade union;
(b) for the provision of carrying out any activity which is exempt from the levy of Goods and Service Tax; or
(c) up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex.
Can the Input Tax Credit be taken on Club membership fees ?
As per Section 17(5)(b)(ii) of CGST Act 2017 :-
.. , input tax credit shall not be available in respect of the following, namely:—
(b) the following supply of goods or services or both:—
(ii) membership of a club, health and fitness centre
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