GST is Applicable on Membership Fee Collected by Rotary Club

Tamilnadu Authority for Advance Ruling (AAR Tamilnadu) in the matter of Rotary District has ruled out that GST is applicable on Membership Fee Collected by Rotary Club.

The Question was that (i) Whether Registration is required? (ii) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of a goods or services (iii) Determination of tax liability

The Authority Ruled Out that the applicant is liable to be registered under the GST Act, as they are providing taxable supplies and the membership fees collected by the applicant is taxable under Section 7(1)(aa) of the CGST/TNGST Act,2017. No ruling is extended with respect to other amounts collected for want of details.

The applicant has stated that “Rotary” is an international organization having clubs in 216 countries engaged in humanitarian and charitable services. These services are executed through various districts comprising of many clubs. The amount collected by rotary is pooled together only for sole purpose of charity and humanitarian activities and these amounts are also used for administration and meetings. In some cases the amount so collected is likely to exceed Rs.20 lacs, being the threshold for registration under GST Act,2017.

The Ruling made by Shri T.G.Venkatesh and Smt K.Latha.

To Read Ruling Download PDF Given Below: