In re Rotary Club of Mumbai Queens Necklace (GST AAAR Maharashtra)
The Appellate Authority for Advance Ruling, hereby, hold that the amount collected as membership subscription and admission fees from members is not liable to GST as supply of services.
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, MAHARASHTRA
PROCEEDINGS
(Under Section 101 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
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.
The present appeal has 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 Rotary Club of Mumbai Queens Necklace (herein after referred to as the “Appellant”) against the Advance Ruling No. GST-ARA-118/2018-19/B-46 dated 30.04.2019.
Brief Facts of the Case
1. This Appeal is being filed by Rotary Club of Mumbai Queens Necklace (‘the Appellant’ or ‘the club’) against ruling no. GST-ARA-118/2018-19/B-46 dated 30.04.2019 pronounced by Maharashtra Authority for Advance Ruling.
2. The appellant, having Good and Service Tax (‘GST’) Registration No. 27AAABR0643JIZ is an un-incorporated association of individuals. The club is affiliated to Rotary International, a worldwide organization with [520+] districts, [35000+] clubs and [1.2 million plus] members. The object of Rotary is to encourage and foster the ideal of service.
3. For the sake of brevity, the structure of Rotary is explained as under:-
(i) Clubs – Rotarians are members of Rotary clubs, which belong to the global association Rotary International (Rl). Each club elects its own officers and enjoys full autonomy within the framework of Rotary’s constitution and bylaws.
(ii) Districts – Clubs are grouped into Rl districts, each led by a district governor. The district administration, includes District Secretary, District Treasurer, assistant governors and various committees. The District, guides and supports the clubs.
(iii) Rotary international Board (Rl) – Rl Board of Directors, which includes the Rl president and president-elect, meets quarterly to establish policies. The Rl president, who is elected annually, develops a theme and emphases for the year.
(iv) The Secretariat: Rotary International is headquartered in the Chicago suburb of Evanston, Illinois, USA, with seven international offices in Argentina, Australia, Brazil, India, Japan, Korea, and Switzerland. The office for Rl in India, serves clubs and districts in that region.
4. The normal functioning of the Rotary as a whole is summarized as under:-
(i) Rotary clubs bring together dedicated individuals to exchange ideas, build relationships, and take action.
(ii) Rotary International supports Rotary clubs worldwide by coordinating global programs, campaigns, and initiatives.
(iii) The Rotary Foundation uses generous donations to fund projects by Rotarians and other partners in communities around the world. As a non-profit, all of the Foundation’s funding comes from voluntary contributions made by Rotarians and friends who share our vision of a better world.
Together, Rotary clubs, Rotary International, and The Rotary Foundation work to make lasting improvements in our communities and around the world.
5. Appellant work with Rotary Foundation to:-
