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2020 (9) TMI 1278 - AAR - GSTSupply or not - service provided by the assessee to its members - applicability of principal of mutuality - assessee and its members are one and same or not - Central/ Jharkhand Goods and Services Tax Act, 2017 - HELD THAT:- The applicant is not a company which provides shareholding to its members rather its liabilities/debts are guaranteed by the members - Now, once it has been established that the applicant is not doing any business in terms of section 2(17) of the CGST Act, 2017, it can be deduced that activities carried out by the applicant would not come under the scope of supply as envisaged under section 7(1) of the CGST Act, 2017. Principal of mutuality - HELD THAT:- The applicant is giving service to its members but the club is formed on the principle of mutuality and, therefore, any transaction by the club to its member is not a transaction between two parties. However, when the club is dealing with its members, it is not a separate and distinct individual. Further, we find that it is a mutuality which constitutes the club and, therefore, supply by a club to its member and its services rendered to the members, is not a supply or service by club to the members. Thus, the applicant is governed by the principal of mutuality - the applicant and its members are one and same.
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