Home Case Index All Cases GST GST + AAR GST - 2023 (4) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (4) TMI 582 - AUTHORITY FOR ADVANCE RULING, TAMILNADUDoctrine of mutuality - Benefit of Exemption from GST - Notification No. 14/2018 - Central Tax dated 26.07.2018 - non-profit association registered under any law engaged for the welfare of farmers vide serial No. 77A, Heading 9995 - applicant-association a person distinct from the member or a related person - Section 7(1) (a), (c) or (d) of the Central Goods and Services Tax Act, 2017 - whether the applicant is eligible to avail the benefit of Notification No. 14/2018 CT dated 26.07.2018 as a registered non-profit association engaged for the welfare of farmers under Serial number 77A and whether there is a transaction between the applicant association and its members which is covered under Section 7(1) (a), (c) or (d) of the GST Act, 2017? - HELD THAT:- In order to tax, the activity must be a supply of either goods or service or both end the supply is to be made for a consideration to a person in the course of furtherance of business, i.e., there should be a supply of goods or service, recipient, supplier, consideration, in the course or for furtherance of business - In the instant case, it is evident from the submissions of the applicant that their activities are squarely covered under scope of supply and their contention that applicant association is neither a person distinct from the member nor a related person is laid to rest by retrospective amendment of Section 7 by insertion of clause (aa) to sub-section (1) and explanation with effect from 01.07.2017, which states that the person and its members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another. As per the provisions of GST Law, the applicant being a registered society, providing services to their members, who are distinct from the applicant and registered as member on payment of any amount towards subscription/contribution, is a supply of service and is accordingly taxable except subscription received from natural persons who are farmers simpliciter and the annual subscription for all membership is up to Rs. 1000/-.
|