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Club membership

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Mudit Jajoo

26 Points Posted on 01 July 2020

Can we take ITC credit for amount paid to acquire club membership of a training institute that helps us provide training to our staff at a concessional rate ?

Replies (2)

Quick Summary

This discussion explores the eligibility of Input Tax Credit (ITC) for club membership fees paid to a training institute for staff development. While training provided by the institute might be eligible for ITC if it's for business purposes, the membership fee itself is generally considered a blocked credit under Section 17(5) of the GST Act. An exception exists if the training is a legal obligation for the employer.

Rajkumar Patel

373 Points Posted on 01 July 2020

You cannot take ITC of membership payment because of it is covered under 17(5) i.e Block Credit even though such membership fess is for business related i.e for employees. However, if such training is given as part of obligation of employer created by law time being in force than you can take ITC.

Mudit Jajoo

26 Points Posted on 01 July 2020

Thank you for the answer. I am eligible to take ITC of the courses purchased from same entity for staff training as it is done for business purposes.
However i cannot take the ITC of the membership fees given to acquire those courses for my courses at a concessional rate.

What would be the logic ??