Club /Society members needs to pay GST

By | September 29, 2016

Club /Society members needs to pay GST

As per the following FAQ’s on GST by CBEC (Meaning and Scope of Supply) , Club/ Society member needs to pay GST on the Services availed by them from such Society or Club. Thus the govt has overridden the Mutuality concept under which services provided by club / society to its members were not chargeable as they were treated one and same person. Thus Club / Society can not provide services to itself. But now the services provided by Society / Club to its members will be treated as Business and they needs to pay GST.

Q 12. Whether provision of service or goods by a club or association or society to its members will be treated as supply or not?

Ans. Yes. Provision of facilities by a club, association, society or any such body to its members shall be treated as supply. This is included in the definition of ‘business’ in section 2(17) of MGL.

Section 2(17)(e) of Model GST Law :-

“business” includes – 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, as the case may be;

Education Guide on Goods & Service Tax (GST)


S. No. Title of the Post
1. Goods and Services Tax (GST): An Overview
2 Levy of GST & Exemption from Tax
3. GST Registration
4. Meaning and Scope of Supply
5 Time of Supply
6 Valuation in GST
7. GST Payment of Tax
8 Electronic Commerce under Goods & Service Tax (GST)
9 Job Work under Goods & Service Tax (GST)
10 Input Tax Credit under Goods & Service Tax (GST)
11 Concept of Input Service Distributor in Goods & Service Tax (GST)
12 Returns Process and matching of Input Tax Credit under GST
13 Assessment and Audit under GST
14 Refund under GST
15 Demands and Recovery under GST
16 Appeals, Review and Revision in GST
17 Advance Ruling in Goods and Service Tax (GST)
18 Settlement Commission in Goods and Service Tax (GST)
19 Inspection, Search, Seizure and Arrest under GST
20 Offences, Penalty, Prosecution & Compounding in GST
21 Integrated Goods & Service Tax (IGST) Act Overview
22. Place of Supply of Goods and Service under GST
23. Frontend Business Process on GST Portal
24. Transitional Provisions in Goods & Service Tax (GST)


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