GST on Societies/Clubs and their Members - Is History repeating itself, or a new chapter in the making?

| Last updated: 07 May 2025

Quick Summary
This article examines the taxability of transactions between members and their clubs or societies under the GST regime. It delves into the historical application of the 'principle of mutuality', which previously exempted such transactions from sales and service taxes. The discussion then analyses how the GST Act, particularly after amendments in 2021, now treats these activities as taxable supplies, even retrospectively from 2017, by deeming members and associations as distinct persons.

Introduction The transactions between society/ clubs and its members have seen unending litigation under the erstwhile Indirect Taxes regime and the same is also continuing in the GST regime. Taking cue of the judicial precedents and the principles enunciated in the past, the article aims to cover
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Ritu Mehta

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