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2019 (11) TMI 420

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..... onstrued as consideration against the supply made by the Respondent to its members, and accordingly will be leviable to GST, while maintaining that Lions Club of Poona Kothrud, on account of the activities i.e. organising training programs/workshops for its members, is liable to take registration for discharging their GST liability'. - MAH/AAAR/SS-RJ/32A/2018-19 - Dated:- 14-8-2019 - SMT. SUNGITA SHARMA, AND SHRI RAJIV JALOTA, MEMBER PROCEEDINGS (under Section 102 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) A. At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the MGST Act. B. In the present case, appeal had been filed under Section 100 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act ] by Assistant Commissioner, Central Tax, Division-IV, CGST, Pune-II Commiss .....

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..... the administrative expenses, is not leviable to GST as the same is not received for extending any benefits or facilities to its members, whatsoever, including the arrangement of any training programs/workshops imparting leadership skills, communication skills etc.. Further, they have brought to our notice that they charge the registration fee for imparting communication skill, managerial skill, and leadership skill by organising workshops etc. on which they agree to pay GST, subject to the condition that their annual turnover exceeds the threshold limit prescribed under the GST law. 2. In view of the above submissions made by the Respondent, we intend to examine the facts of the case vis-å-vis our findings in the Order in question. For this purpose, we would like to revisit the para 18 & 19 of the order in question, wherein we had discussed the activities of the Respondent covered under the ambit of supply and then the consideration part of this supply made by the respondent respectively. For the ease of reference, para 18 is being reproduced herein under: Further, coming to the issue no.(b) i.e. whether the activities, undertaken by the Respondent by way of organizing t .....

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..... amine the issue no. (c) above i.e. Whether the fee collected by the Respondent i.e. the Lions Club from its members in the form of entrance fee and annual membership fee can be treated as consideration or not. For this, we will discuss the meaning of the term consideration envisaged under Section 2(31) of the CGST Act, 2017, the relevant extract of which has been reproduced herein below: consideration in relation to the supply of goods or services or both includes- (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or State Government; (b) ………………………. Thus, from the above inclusive definition of the term consideration , it can decisively be construed that the membership fee collected by the Club from its members is not only meant for meeting the administrative expenses, but is also towards organising the Leadership Program for the direct or indirect benefits of the members. Any Leadership Skill al .....

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..... rs ii) Printing of Circulars iii) Stationery iv) Postage v) Greetings 8. Further, they have also submitted that no other facilities or benefits such as sports, fitness, recreation, lifestyle, entertainment and persona/ transportation are provided to its Members. 9. The Respondent, vide their submissions dated 12.06.2019 filed for the amendment of the AAAR Order dated 23.04.2019, has also drawn the attention to the para 8 & 9 of the Declaration of Body of Individuals (Bol) executed on 27.02.2019, wherein it was declared as under: 7. The BOI may collect funds from each member as decided from time to time on its membership 8. Such funds collected shall be utilized only for paying Members meeting expenses for formulation of policies and directions; administrative expenses, office supplies; communication and such other incidental expenses for updating education for the purpose of carrying on Service activities in a better manner. 9. The Members shall not be entitled to any facilities whatsoever such as sports, fitness, recreation, lifestyle, entertainment and personal transportation etc. 10. In order to support the above declaration of the Bol dated 27.02.2019, they have also furnis .....

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