Page 126 - GSTL_13th August 2020_Vol 39_Part 2

212 GST LAW TIMES [ Vol. 39
of the society, undertaking and providing any social, cultural or recreation activi-
ties can clearly be considered as rendering of “supply” of service being provided
to its members.
5.5.4 We find from the definition of “supply” that, to be considered so,
such supply should be made by a person, for a consideration and should be made in the
course or furtherance of business. Thus we have to find whether ; the applicant can
be considered as a ‘person’; whether the amounts collected from their members
can be treated as ‘consideration’ and finally whether such supply is made in the
course or furtherance of business.
5.6 The word “person” mentioned in Section 7(1)(a) is defined in Sec-
tion 2(84)(i) of the CGST Act, 2017 and amongst others, specifically includes ‘a
co-operative society registered under any law relating to co-operative societies’.
Thus a registered co-operative society is a person within the meaning of the term
in the CGST Act. We agree with the jurisdictional officer that as per the definition
of the term “person”, in terms of Section 2(84) of the CGST Act, 2017, in the in-
stant case, there are two distinct persons, one the Applicant Society and another,
the member thereof. Thus we find that in the subject case there is a supply made
by a person i.e. the applicant.
5.7 The next question which arises is whether the activities (supply of
services) by the society i.e ‘a person’, can be said to be made for a consideration.
As per Section 2(31) of the CGST Act, 2017, consideration, in relation to the supply of
goods or services or both, includes 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.
5.8 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 also meant for meeting expenses for activities un-
dertaken by the applicant to achieve the various objects of the society as men-
tioned in By-laws of the Society. Thus, membership fee collected by Applicant
from its members will be treated as “consideration” paid for supply of services.
5.9 The next question which arises is whether the activity of the society
i.e ‘a person’, can be said to be in the course or furtherance of business. The defi-
nition of business as per Section 2(17) of the CGST Act, 2017 is as under :
“Business” includes -
(a) ……………………..;
(b) ................................sub-clause (a);
(c) ……………………..;
(d) ……………………..;
(e) provision by a club, association, society, or any such body (for
a subscription or any other consideration) of the facilities or
benefits to its members;
(f) to (n) ………………;
5.10 Thus, as per Section 2(17)(e) of the CGST Act, 2017,‘provision by a
club, association, society, or any such body (for a subscription or any other con-
sideration) of the facilities or benefits to its members is deemed to be a ‘business’.
In the subject case, we find that the applicant is making supply to its members
and receiving consideration for the same. Further, as per the definition of “busi-
ness” reproduced above, we also find that the various activities undertaken by
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