arpithaldia | Apr 5, 2019 |
Taxability of Services provided by Clubs to its Members : AAR West Bengal
Author has analysed GST advance Ruling by WEST BENGAL AUTHORITY FOR ADVANCE RULING GOODS AND SERVICES TAX in matter of The Bengal Rowing Club through this article.
Query 1: What is the rate of GST applicable on the services offered by the applicant to its members, like restaurant service offered along with the supply of food, services like valet parking, music, decoration and other such services associated with organizing social gatherings etc.
Query 2: What is the admissible proportion of the input tax credit for services other than the supply of food.
Taxability of Services provided by Clubs to its Members : AAR West Bengal
2. Facts: The Applicant is stated to be a company limited by guarantee and registered with ROC as a non-profit making company. It is engaged in providing its members privileges and amenities of a club such as swimming facility, gymnasium, indoor games, restaurant service etc.
3. Contention of the Applicant The rates at which the Applicant charges GST on various supplies are provided in the table below.
Held by AAR
Query 1: Tax Rate applicable on Services supplied by the Applicant
Nature of Supply |
| SAC Code | Entry No. |
If applicant provides lodging facility and makes supply of food from its restaurant, along with eating facility and ambience and other amenities, whether or not the food is consumed at the restaurant or taken away | 5%/18% | 9963 | No. 7(i) or 7(iii) of Notification No. 11/2017-Central Tax (Rate) |
If applicant provides no lodging service and makes supply of food from its restaurant, along with eating facility and ambience and other amenities, whether or not the food is consumed at the restaurant or taken away | 5% | 9963 | No. 7(i) of Notification No. 11/2017-Central Tax (Rate) |
Food is supplied by way of or as part of services associated with organizing social events at club premises, together with renting of such premises | 18% | 9963 | No. 7(vii) of Notification No. 11/2017-Central Tax (Rate) |
All other services offered by applicant, being services of a membership organization,including swimming and other facilities and services that are not bundled with the supply of food and charged separately, whether or not provided at the restaurant or at any other place. | 18% | 9995 | No. 33 of Notification No. 11/2017-Central Tax (Rate) |
Query 2: Applicant should, apply the provisions under section 17(2) & (6) for apportionment of the input tax credit, treating supplies, if any, taxable under Sl No. 7(i) of the Rate Notification, as exempt supplies.
5. Comment
The Ruling clearly lays down relevant rates to be charged by the applicant from its members for the various services offered by it. The ruling also somewhere lays down the principal wherein services which have been specified elsewhere would be classified under the relevant SAC and not under SAC 9995 ia.e. services by membership organizations. Further, other services not elsewhere classified rendered by the applicants to its members would be taxable under SAC 9995.
Explanatory Notes to the Scheme of Classification of Services under Chapter Heading 9995 also provide that this group does not include: –
a) Accommodation services provided by such organizations, except where mentioned, of. group 99631
b) Education services provided by such organizations, cf. Heading 9992
c) Health and social services provided by such organizations, cf. Heading 9993
Tags : gst on membership fees of club, gst rate on club membership fees, gst on club services, gst on club membership charges, service tax on club membership fees, gst rate for clubs, applicability of gst on membership subscription, gst on association membership fees
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