9911796707
TMI Blog2022 (8) TMI 972X X X X Extracts X X X X X X X X Extracts X X X X ..... nd thus the first limb of the Section 7(1) is not fulfilled. Also admittedly there is no quid pro quo involved to treat the amount as consideration and there is no business relationship between the donor and the applicant and hence the receipt of donation is not towards any supply - the applicant admittedly is neither undertaking nor proposed to undertake any supply of goods or services or both to the donor in respect of the donation received and thus there is no supply in terms of Section 7(1) of the CGST Act 2017 and hence the instant application does not qualify as an application for advance ruling in terms of Section 97 read with Section 95(a) and Section 7(1) of the Act, ibid, and is liable for rejection in terms of Section 98(2) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or not? 4. Applicant's Interpretation of Law: The applicant submitted a copy of the letter from the donor to the applicant wherein the donor mentioned that the donation has been given, by the donor, without any instructions or without a quid pro quo in the form of supply of any goods or services by the club to the donor; The donation is without any favour or for favour in return and is a financial help or any other support from the donor, which is not aimed at giving publicity to the donor in such manner that it would be an advertising or promotion of business of the donor and hence there is no supply of service for a consideration. The applicant, in view of this, without furnishing any interpretation of law, contends that the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (aa) is a supply and this consideration can be for future supply of service. Keeping all these points in view, in our opinion this can be considered a supply and the payment will be taxable. 6. A personal hearing opportunity, scheduled on 07-07-2022, was provided to the applicant, but the applicant vide their letter dated 04.07.2022, requested to dispose the instant application on merits quoting the reasons that they are preoccupied with other assignment and also they have already submitted all the required documents including the related case law. FINDINGS DISCUSSION 7. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ritable trust, registered under Maharashtra Public Charitable Trust Act 1950; also registered under Societies Act as well as registered under Section 12AA of the Income Tax Act 402.64 el. 08.10.2009. In the instant case the applicant is a society, registered under Karnataka Society Registration Act, at Madikeri, but not a charitable trust. Thus the ruling of AAR, Maharashtra is not relevant to the instant case. 11. In the instant case, it is an admitted fact that the donor has donated Rs.1 Crore to the applicant out of natural love affection and there is neither quid pro quo nor any supply is involved. 12. In view of the above we proceed to examine the admissibility of the instant application. We invite reference to Section 97, Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of business. 13. In the instant case the applicant admittedly is not involved in supply nor intends to supply any goods or services or both to the donor and thus the first limb of the Section 7(1) supra is not fulfilled. Also admittedly there is no quid pro quo involved to treat the amount as consideration and there is no business relationship between the donor and the applicant and hence the receipt of donation is not towards any supply. Thus from the facts brought forth in the application for advance ruling, the applicant admittedly is neither undertaking nor proposed to undertake any supply of goods or services or both to the donor in respect of the donation received and thus there is no supply in terms of Section 7(1) of the CGST ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
