Membership Fees Collected by Clubs not Liable to GST

The membership or admission fee charged by clubs is not for services provided, and hence does not fall under the ambit of goods and services tax (GST), ruled the Maharashtra Appellate Authority of Advance Ruling (AAAR).

The appellate body said that since the membership fee of the appellant-Rotary Club of Mumbai Queens Necklace is used for meeting administrative expenditure and is not in lieu of any specific facility or benefits being provided, it does not fall under the ambit of taxation, and hence no credit against it can be availed. “We hereby hold that the amount collected as membership subscription and admission fees from members is not liable to GST
as the supply of services,” the AAAR said in an order issued recently.