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TMI Blog2018 (11) TMI 1574X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under the WBGST/CGST Act, 2017 (hereinafter referred to as "the GST Act"). Under Section 97 of the GST Act, Advance Ruling cannot be pronounced on the determination and definition of "business". The question regarding whether or not the activities undertaken by the Applicant is to be considered as "supply of services" is admissible under Section 97(2)(g) of the GST Act. However, to determine whether or not the activities of the Applicant are to be considered as "supply of services" it is essential that it be first determined whether or not the activities fall under the definition of "business" under the GST Act. The question of the Applicant as to whether the activities undertaken by them may be termed "business" or not, is, hence, ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the ambit of "business" within the meaning of Section 2(17) of the GST Act, as they are undertaken to facilitate and are ancillary to "charitable service" which is not covered in the above clause. In this connection, reference is made to the decision of the Apex Court in Commissioner of Sales Tax v. Sai Publication Fund [(2002) 126 STC 288 (SC)] = 2002 (3) TMI 45 - SUPREME COURT. Supreme Court observes that if the main activity is not business, then activities ancillary to the main activity are not to be treated as a business. The Applicant also submits that the activities of the clubs do not fall within the ambit of "supply" as explained under Section 7(1) of the GST Act. 3. Sec 7(1) of the GST Act defines the scope of supply as below ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailure to pay an annual subscription by 31st December. An Honoured Active Membership subscription will be paid by the particular Club of which she is a member, only for the year, she is awarded the Honoured Active Membership. Thereafter, the Honoured Active Member is required to pay all her dues. Honorary Members are invited annually and may be subject to re-election, Membership at Large is also payable on payment of the appropriate International Inner Wheel Capitation Fees. It is also seen that each Club of Inner Wheel is required to pay the International Inner Wheel such Annual Capitation Fee for each member as shall be determined from time to time at the annual Convention, or, if in the years between, the inflation of the pound sterlin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heel Clubs to award their members for their outstanding services. The Margarette Golding Award is one such award, which appears to be the equivalent of ten pounds sterling (plus the bank draft fee) payable by the presenting Club or District or the National Governing Body to the National Treasure. The Applicant's Income and Expenditure and Receipts and Payments Accounts for FY 18 and the Balance Sheet as on March 31, 2018, provide an idea of the nature of financial transactions made by the Inner Wheel Clubs. It appears that the fund collected is mainly spent on organising meetings and conventions like Triennial etc. Clearly, such meetings and gatherings provide facilities and benefits to the members in the form of a platform for social mix ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rding these activities are, therefore, business transactions within the meaning of section 2(17)(b), being transactions undertaken in connection with or incidental or ancillary to the social welfare activities of the Applicant, and are supplies in terms of Section 7(1) of the GST Act. Such services are classifiable under SAC Heading 99836 under the category 'Advertising services'. Sale of souvenirs is to be treated as a supply of goods. 11. The decision of the apex court in Sai Publication Fund (supra) is clearly not applicable in the present context, as the main activity is to be treated as a business. In view of the foregoing, we rule as below RULING The Applicant's activities involve supply of services classifiable under SAC Headin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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