Page 115 - GSTL_16 April 2020_Vol 35_Part 3

2020 ] IN RE : ROTARY CLUB OF MUMBAI QUEENS NECKLACE 329
ly amounts to furtherance of business. In lieu of con-
sideration received as membership fees, admission
fees and subscriptions are taxable as supply of ser-
vices under GST. So, prima facie there appears a levy
of GST on the issue on above said issue.
(2) If receipts are liable to GST, can the club claim input tax credit of the
tax paid on banquet and catering services for holding members
meetings and various events?
(2.1) In this regard, it appears that according to Section 17(5)(b) of CGST
Act, 2017 mentions various situations wherein ITC cannot be
availed. The Section 17(5)(b) is reproduced is as under :-
Section 17(5) : - Notwithstanding anything contained in sub-section
(1) of section 16 and sub-section (1) of section 18, input tax credit
shall not be available in respect of the following, namely :-
* * * *
(b) the following supply of goods or services or both :-
(i) food & beverages, outdoor catering, beauty treatment,
health services, cosmetic and plastic surgery, leasing
renting or hiring of motor vehicles, vessels or aircraft re-
ferred to in clause (a) or clause (aa) except when used for
the purpose specified therein, life insurance and health
insurance :
Provided that the input tax credit in respect of such
goods or services or both shall be available where an in-
ward supply of such goods or services or both is used by
a registered person for making as outward taxable sup-
ply of the same category of goods or services or both or
as element of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre;
(iii) travel benefits extended to employees on vacation such
as leave or home travel concessions :
Provided that the input tax credit in respect of such
goods or services or both shall be available, where it is
obligatory for an employer to provide the same to its
employees under any law for the time being in force.
In view of the above, it is to state that the club or association cannot claim input
tax credit on the tax paid on catering and other such services.
Discussions and Findings :
44. Heard both the parties. We have also gone through the entire case
records including the facts of the case, rulings pronounced by AAR, and the writ-
ten submissions made by the Appellant as well as by the Respondent.
On perusal of the entire case records, the moot issue in the present case is
whether the membership/subscription fees, admission fees collected by the Ap-
pellant from its members will be subject to GST or not. In other words, whether
the transaction between the Appellant and its members can be construed as sup-
ply as envisaged under Section 7 of the CGST Act, 2017, or otherwise.
45. At the outset, we would like to discuss the scope of term “supply”

GST LAW TIMES  16th April 2020  235