Page 124 - GSTL_13th August 2020_Vol 39_Part 2

210 GST LAW TIMES [ Vol. 39
the Applicant Society and its member are not distinct entity is not tenable in so
far as taxability in the GST regime is concerned.
3.2 GST Law has given very wide connotation for services, which will
cover any activity other than those involving goods, money and securities.
Therefore, the activity of Applicant inasmuch as they are obtaining conveyance
from the promoter (Builder), managing, maintaining and administering the
property of the society, raising fund for achieving the objects of the society, un-
dertaking and providing any social, cultural or recreation activities either by
their own account or jointly with any co-operative institution etc., can clearly be
considered as service being provided to its members.
3.3 From the definition of the term “consideration” as per Section 2(31)
of the CGST Act, 2017, it can be construed that membership fees collected by the
Applicant from its members is not only meant for meeting the administrative
expenses, but is also towards attaining various objects of the society as men-
tioned in By !aws of the Society. Thus, membership fee collected by Applicant
from its members will be treated as “consideration” paid for supply of services.
3.4 The term “Supply”, defined under Section 7 of the CGST Act, 2017
has wide connotation due to the presence of the clause “all forms of supply of goods
or services or both”. However, barring specified exceptions and instances, pre-
scribed under Section 7 of the CGST Act, the following two conditions have been
imposed to be considered as “Supply” under GST Law, namely, (i) such supply
should be made by a person for a consideration; and (ii) such supply should be
made in the course or furtherance of business. In the instant case, it is observed
that the applicant is making supply to its members and receiving consideration
for the same. Further, as per the definition of “business” provided under Section
2(17) of the CGST Act, 2017 it can clearly be concluded that the provision of the
various activities by the applicant for the benefit of its members will come under
the scope of business and the various services in the form of obtaining convey-
ance from the promoter (Builder), managing, maintaining and administering the
property of the society, raising fund for achieving the objects of the society, un-
dertaking and providing any social, cultural or recreation activities either by
their own account or jointly with any co-operative institution for its members has
been made in the course of business only. Both the conditions stipulated for the
“Supply” under the GST Law have been fulfilled which leads to the conclusion
that the transaction between the Applicant and its members are nothing but sup-
ply, and accordingly will attract GST.
4. Hearing
Preliminary hearing in the matter was held on 14-11-2019. Sh. Rahul
Thakar, Advocate appeared and informed the Bench that he was not carrying the
concerned file for making his arguments. Hence, the matter was adjourned to
26-11-2019. Sh. C.B. Thakar, Advocate appeared and requested for admission of
the application. Jurisdictional Officer, Sh. Samara Pilankat, Supdt., Division-VIII,
Range-III, Commissionerate Mumbai South CGST, Mumbai appeared and gave
written submissions.
The application was admitted and called for final hearing on 7-1-2020,
Sh. C.B. Thakar, Advocate appeared and made oral and written submissions.
Jurisdictional Officer Sh. Raju Khobragade, Supdt., Division-VIII, Range-I,
Commissionerate Mumbai South CGST, Mumbai also appeared and made writ-
ten submissions.
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