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Gst on club membership fees

07 June 2023

can a taxpayer show club membership fees as non gst supply? is gst not applicable on club membership fees when it is amounting to Rs. 97 lacs?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 07 June 2023

The AAR, Maharashtra in the matter of M/S the Poona Club Limited [Advance Ruling No.GST-ARA-123/2019-20/B-12 dated January 31, 2022] held that....

club of membership association and its members are distinct persons and the membership/ subscripttion fee, and annual fee, received from its members are consideration for supply of goods/services as a separate entity covered by the scope of the term ‘business’ and, thus, principle of mutuality is not applicable. Hence, GST would be payable on amounts received from club members.