The contribution paid/payable by the members towards Development Cost of the Bourse amounts to supply liable to GST.
Levy of GST— Section 7 of CGST Act— In the instant case, applicant (Gujarat hira bourse) submits that it is Not-for-Profit Company. And it is registered under Section 12A of the Income Tax, 1961, engaged in the development of Gems and Jewellery Park.
Question on which Advance Ruling sought?
a. Whether the contribution paid/payable by the members towards Development Cost of the Bourse amounts to supply liable to Goods and Service Tax?
b. Whether the said Contribution by members towards Development Cost of Bourse for the promotion of Exports of Gem and Jewellery would be exempt under Entry No.41(Heading 9972) of Notification No.12/2017Central Tax(Rate) dated 28-6-2017?
c. Once the captioned amendment to Section 7(1) of the CGST Act, 2017 is notified by the Central Government, if the liability to pay tax shall accrue with retrospective effect from 1st July, 2017. Whether, interest would be payable on the accrued Tax liability for the said period from 1st July, 2017 upto the date on which the amendment is notified?
As per the GST scheme of law, with specific reference to Section 2(17)(a),(e) CGST Act, this authority find that the activity by GHB to its members, whether or not it is for pecuniary benefit, falls within the definition of ‘business’.
Held that— a. The subject consideration paid by industrial units to GHB is liable to GST. The Subject activity by GHB is Supply of Service.
b. The consideration paid to GHB is not exempt under entry 41 to said Notification.
c. Liability to GST arises from 1-7-2017.
The contribution paid/payable by the members towards Development Cost of the Bourse amounts to supply liable to GST.
Levy of GST— Section 7 of CGST Act— In the instant case, applicant (Gujarat hira bourse) submits that it is Not-for-Profit Company. And it is registered under Section 12A of the Income Tax, 1961, engaged in the development of Gems and Jewellery Park.
Question on which Advance Ruling sought?
a. Whether the contribution paid/payable by the members towards Development Cost of the Bourse amounts to supply liable to Goods and Service Tax?
b. Whether the said Contribution by members towards Development Cost of Bourse for the promotion of Exports of Gem and Jewellery would be exempt under Entry No.41(Heading 9972) of Notification No.12/2017Central Tax(Rate) dated 28-6-2017?
c. Once the captioned amendment to Section 7(1) of the CGST Act, 2017 is notified by the Central Government, if the liability to pay tax shall accrue with retrospective effect from 1st July, 2017. Whether, interest would be payable on the accrued Tax liability for the said period from 1st July, 2017 upto the date on which the amendment is notified?
As per the GST scheme of law, with specific reference to Section 2(17)(a),(e) CGST Act, this authority find that the activity by GHB to its members, whether or not it is for pecuniary benefit, falls within the definition of ‘business’.
Held that— a. The subject consideration paid by industrial units to GHB is liable to GST. The Subject activity by GHB is Supply of Service.
b. The consideration paid to GHB is not exempt under entry 41 to said Notification.
c. Liability to GST arises from 1-7-2017.