TMI Blog2018 (11) TMI 1574X X X X Extracts X X X X X X X X Extracts X X X X ..... pent on organising meetings and conventions like Triennial etc. Clearly, such meetings and gatherings provide facilities and benefits to the members in the form of a platform for social mixing, networking, promotion of friendship etc. The term “business” under the GST Act includes, under Section 2(17), subclause (e) “provision by a club, association, society, or any other body (for a subscription or any other consideration) of the facilities or benefits to its members. It is, thus, clear that the Applicant is doing “business” as defined under section 2(17)(e) of the GST Act - The subscription and membership fee is to be considered as consideration for the supply of such services, which are classifiable under SAC Heading 99959 under the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), seeks a Ruling on whether the activities that are undertaken by them maybe termed as business and supply of services as defined under the WBGST/CGST Act, 2017 (hereinafter referred to as the GST Act ). Under Section 97 of the GST Act, Advance Ruling cannot be pronounced on the determination and definition of business . The question regarding whether or not the activities undertaken by the Applicant is to be considered as supply of services is admissible under Section 97(2)(g) of the GST Act. However, to determine whether or not the activities of the Applicant are to be considered as supply of services it is essential that it be first determined whether or not the activities fall under the definition of business under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Applicant submits that although funds are collected through sponsorship fees, advertisements, sale of souvenirs etc, such activities do not fall within the ambit of business within the meaning of Section 2(17) of the GST Act, as they are undertaken to facilitate and are ancillary to charitable service which is not covered in the above clause. In this connection, reference is made to the decision of the Apex Court in Commissioner of Sales Tax v. Sai Publication Fund [(2002) 126 STC 288 (SC)] = 2002 (3) TMI 45 - SUPREME COURT . Supreme Court observes that if the main activity is not business, then activities ancillary to the main activity are not to be treated as a business. The Applicant also submits that the activities of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt is affiliated. To be a Member of an Inner Wheel Club definite qualifications are specified. Membership fees are also charged, renewable annually. Active Membership may be terminated on failure to pay an annual subscription by 31 st December. An Honoured Active Membership subscription will be paid by the particular Club of which she is a member, only for the year, she is awarded the Honoured Active Membership. Thereafter, the Honoured Active Member is required to pay all her dues. Honorary Members are invited annually and may be subject to re-election, Membership at Large is also payable on payment of the appropriate International Inner Wheel Capitation Fees. It is also seen that each Club of Inner Wheel is required to pay the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... organisations, both nationally and globally, arranged for by the Organisation. Such facilities/benefits are not available to the non-members of the Organisation. 7. There is also a provision by the Inner Wheel Clubs to award their members for their outstanding services. The Margarette Golding Award is one such award, which appears to be the equivalent of ten pounds sterling (plus the bank draft fee) payable by the presenting Club or District or the National Governing Body to the National Treasure. The Applicant s Income and Expenditure and Receipts and Payments Accounts for FY 18 and the Balance Sheet as on March 31, 2018, provide an idea of the nature of financial transactions made by the Inner Wheel Clubs. It appears that the fun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxable supply of service if consideration is charged from the recipient. 10. However, the Applicant also has activities which involve providing space for advertisements, raising sponsorship etc, and the transactions regarding these activities are, therefore, business transactions within the meaning of section 2(17)(b), being transactions undertaken in connection with or incidental or ancillary to the social welfare activities of the Applicant, and are supplies in terms of Section 7(1) of the GST Act. Such services are classifiable under SAC Heading 99836 under the category Advertising services . Sale of souvenirs is to be treated as a supply of goods. 11. The decision of the apex court in Sai Publication Fund (supra) is clearl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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