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2022 (2) TMI 1103 - AAR - GSTClassification of supply - supply or goods or supply of services - Requirement of registration of petitioner - amount collected by rotary is pooled together only for the sole purpose of charity and humanitarian activities for the most needed ones and requisite meeting and administration expenses without any profit motive - no furtherance of business in this activity and neither any services are rendered nor are any goods being traded - determination of liability to pay tax on any goods or services or both - HELD THAT:- Sub-section (aa) has been inserted vide Notification no.39/2021-C.T dt.21.12.21 which is brought into force on 01.01.2022 with retrospective effect from 01.07.2017. Hence the activities performed by a person other than an individual to its members for a consideration is a supply as per the scope of this section. In the explanation provided it has been clarified that the members and the person i.e. the association shall be deemed to be two separate person and the supply of activities shall be deemed to take place from one such person or another and hence is a supply liable to be taxed - the activities rendered by the applicant to its members for which the membership fees collected forms the consideration is a supply and is liable to be taxed. Once it is held that the applicant and it's members are distinct and that the membership fee collected from its members is found taxable, they provide taxable service and are required to be registered under the CGST Act, 2017 subject to the exceptions available with regard to the monetary limit for such registration. Whether the activities rendered by the applicant, which they term as charitable etc., amount to supply? - manner of determination of tax liability - HELD THAT:- In the present case, the applicant had furnished details for the activities already done in the yester years. During the Personal hearing held on 21.12.21, the applicant was informed that the activities pertained to the years 2017-18 and 2018-19, which have been completed on which ruling cannot be extended by this authority under Section 95 of the GST Act. The authorized representatives accepted the fact. Hence this authority is constrained in considering this question on merits. Therefore no ruling is extended in respect of this question as the same is not related to the activities being undertaken or proposed to be undertaken. Whether the membership fees collected by the applicant from their Members is subject to tax? - HELD THAT:- As the activities rendered by the applicant to their Members is a supply to its constituents/members and they have to be registered. With respect to the question of whether specific activities listed by them and performed by the applicant are liable to tax, it has been found that the activities so rendered by the applicant are pertaining to the previous years and they have been rendered complete. Hence the question is found to be beyond the scope of Section 95(a) of the Act and is not answered. The GST liability on all the amounts collected other than Membership fees is not answered as the details relating to the said amounts was not furnished.
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