Levy of GST— In the instant case, the applicant is seeking an advance ruling in respect of the following questions— 

1. Whether membership fee collected from members at the time of giving membership is liable to tax under CGST/SGST Act?

2. Whether the annual subscription and annual games fee collected from members of club is liable to tax under CGST/SGST Act?

The applicant is of the opinion that the said membership fee, annual subscription and annual games fee collected from members of club are not liable to tax under CGST/SGST Act. The primary reason given by the applicant in support of their contention is that, the principle of mutuality is applicable in their case because the club and its members have the same identity.

In view of the amended Section 7of the CGST Act, 2017, we find that the applicant club and its members are distinct persons and the fees received by the applicant, from its members are nothing but consideration received for supply of goods/services as a separate entity. The principles of mutuality, which has been cited by the applicant to support its contention that it is not rendering any supply to its members and GST is not leviable on the fees collected from its members, is not applicable in view of the amended Section 7 of the CGST Act, 2017 and therefore, the applicant has to pay GST on the said amounts received from its members.

Held that— Membership fee collected from members at the time of giving membership is liable to tax under CGST/SGST Act.

The annual subscription and annual games fee collected from members of club is liable to tax under CGST/SGST Act