Issue : The Advance Ruling Authority ruled that the applicant’s activities involve the supply of services .
The appellant had filed an appeal against advance ruling with the prayer to set aside the impugned advance ruling on the grounds that the activities of the club were restricted to social welfare activities and did not grant any personal benefit or facilities to the members.
Goods and Services Tax is levied on intra-State and inter-State supply of goods and services. According to section 7, the expression ‘supply’ includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business, and includes activities specified in Schedule II to the GST Act. The 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 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. 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.
APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL
Inner Wheel Clubs of India. In re
APPEAL NO. 11/WBAAAR/2018
MARCH 20, 2019
Ms. Anchal Shraff, CA for the Appellant.