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TMI Blog2019 (11) TMI 420X X X X Extracts X X X X X X X X Extracts X X X X ..... iented workshops, will be construed as consideration against the supply made by the Respondent to its members, and accordingly will be leviable to GST, while maintaining that Lions Club of Poona Kothrud, on account of the activities i.e. organising training programs/workshops for its members, is liable to take registration for discharging their GST liability'. - MAH/AAAR/SS-RJ/32A/2018-19 - - - Dated:- 14-8-2019 - SMT. SUNGITA SHARMA, AND SHRI RAJIV JALOTA, MEMBER PROCEEDINGS (under Section 102 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) A. 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. B. In the present case, appeal had 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 M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional submission made by the respondent on 12.06.2019 vide which they have submitted that the membership fee charged by them from their members, which are exclusively used for meeting the administrative expenses, is not leviable to GST as the same is not received for extending any benefits or facilities to its members, whatsoever, including the arrangement of any training programs/workshops imparting leadership skills, communication skills etc.. Further, they have brought to our notice that they charge the registration fee for imparting communication skill, managerial skill, and leadership skill by organising workshops etc. on which they agree to pay GST, subject to the condition that their annual turnover exceeds the threshold limit prescribed under the GST law. 2. In view of the above submissions made by the Respondent, we intend to examine the facts of the case vis- -vis our findings in the Order in question. For this purpose, we would like to revisit the para 18 19 of the order in question , wherein we had discussed the activities of the Respondent covered under the ambit of supply and then the consideration part of this supply made by the respondent respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cussed any other activities of the Respondent, which will be covered under the scope of Supply. 4. Now, we set out to discuss para 19, which deals with the consideration portion of the above discussed supply. Para 19 is being reproduced herein under for the ease of reference: Now, we want to examine the issue no. (c) above i.e. Whether the fee collected by the Respondent i.e. the Lions Club from its members in the form of entrance fee and annual membership fee can be treated as consideration or not. For this, we will discuss the meaning of the term consideration envisaged under Section 2(31) of the CGST Act, 2017, the relevant extract of which has been reproduced herein below: consideration in relation to the supply of goods or services or both includes- (a) 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 but shall not include any subsidy given by the Central Government or State Government; (b) . Thus, from the above inclusiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er: i) Meeting Expenses ii) Printing of Circulars iii) Stationery iv) Postage v) Greetings vi) Fees payable to International office vii) Fees payable to Multiple office 7. The various expenditure heads under which the Cabinet membership fee collected by the Respondent is appropriated or utilized are detailed as under: i) Meeting Expenses of Cabinet Members ii) Printing of Circulars iii) Stationery iv) Postage v) Greetings 8. Further, they have also submitted that no other facilities or benefits such as sports, fitness, recreation, lifestyle, entertainment and persona/ transportation are provided to its Members. 9. The Respondent, vide their submissions dated 12.06.2019 filed for the amendment of the AAAR Order dated 23.04.2019, has also drawn the attention to the para 8 9 of the Declaration of Body of Individuals (Bol) executed on 27.02.2019, wherein it was declared as under: 7. The BOI may collect funds from each member as decided from time to time on its membership 8. Such funds col ..... X X X X Extracts X X X X X X X X Extracts X X X X
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