Appeal has been filed by the Rotary Club of Mumbai Queens Necklace against the decision of the Maharashtra Authority for Advance Ruling (AAR), which had classified the functioning of the Rotary Club as any other club registered under the GST.
The appellant proved that their functions include promotion of peace, fighting diseases, providing clean water, sanitation and hygiene, protection of mothers and children, support of education and not the provision of services and goods such as recreation, sports which other clubs provide in the normal course of business. The amount collected from members as subscription and admission fees are strictly utilized for the administration purposes, meeting expenses, banquet expenses, catering expenses and printing and stationery expenses of the club.
The Appellate Authority held that since it is not being established that Appellant is doing any business in terms of section 2(17) of the CGST Act 2017, it can be said that activities carried out by the appellant would not come under the scope of supply under section 7(1) of the CGST Act, 2017.
The Maharashtra Appellate Authority for Advance Ruling (AAAR) has ruled that the amount collected as membership subscription and admission fees by Rotary Club from its members does not attract Goods and Services Tax (GST) as a supply of service.