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2020 ] IN RE : ROTARY CLUB OF MUMBAI QUEENS NECKLACE 327
(b) the following supply of goods or services or both -
(i) food and beverages, outdoor catering, beauty treat-
ment, health services, cosmetic and plastic surgery, leas-
ing, renting or hiring of motor vehicles, vessels or aircraft
referred to in clause (a) or clause (aa) except when used
for the purposes specified therein, life insurance and
health insurance :
Provided that the input tax credit in respect of such goods and
services or both shall be available where an inward supply of
goods or services or both of a particular category is used by a
registered person for making an outward taxable supply of the
same category of goods or services or both or as an element of a
taxable composite or mixed supply;
(e) Appellant is availing banquet and catering services, professional’s
services, auditor’s services, etc. for providing outward composite
supply in nature of club membership/subscription fees. Club mem-
bership/subscription fees is a taxable composite supply liable to
GST.
(f) Advance ruling authority in the case of All Rajasthan Corrugated
Board And Box Manufacturers Association has held that “ITC of tax paid
on food and beverages will be available to the applicant because the appli-
cant will use such inward supply as an element of an outward supply of
event organization which is a taxable composite supply.”
While going through the above provisions of Section 17(5), it can be concluded
that ITC of tax paid on food and beverages should be available to the appellant
because it will use such inward supply as an element of an outward supply of
club membership which is a taxable composite supply and it is not a blocked
credit as normally envisaged.
Respondent’s submission dated 4-11-2019 :
43. In the instant case M/s. Rotary Club of Mumbai Queens Necklace
has raised two queries which are as under :-
(1) Whether the amount collected as membership subscription and
admission fees from members is liable to GST :-
(1.1) According to the Article 8 of Section 1 of By laws of the Rotary Club
of Mumbai Queens’s Necklace that club committee coordinates their
efforts to achieve club’s annual and long-term goals. Each club
should have the committee listed in Article 13 Section 7 of Standard
Rotary club constitution. However, M/s. Rotary Club of Mumbai
Queens Necklace have not submitted the copies of Article 13 Section
7 in their application. Therefore, in order to ascertain the responsi-
bilities and privileges of the Committee and their members, the de-
partment searched the literature available on internet, it has come to
department’s notice that Rotary clubs are involved in two kind of
activities :-
(i) Social Service Activities : - It is ascertained that M/s. Rotary
Club of Mumbai Queens Necklace are into social services like
all other Rotary clubs. Ex. Fighting diseases, Working to-
wards education, etc.
(ii) Professional and Recreational Activities : - Along with Social
GST LAW TIMES  16th April 2020  233