Applicability of GST — Authority for Advance Ruling — Taxability on Fees collected by Clubs – The applicant Lions Clubs is an International organization having clubs in 210 countries engaged in humanitarian and charitable services. These services are executed through various districts comprising of many Clubs. In order to facilitate the meetings and administration fees are collected from members. These amounts are then used for administration and meetings. In some cases the amount so collected is likely to exceed Rs. 20 lacs, being the threshold for registration under GST Act, 2017. The fees collected is to defray its expenditure on meetings and communication. No facilities/ benefits are provided such as recreation, etc by Individual clubs. The applicant sought an advance ruling on the issue that ‘since the amount collected by individual Lions clubs and Lions District is for convenience of Lion members and pooled together only for paying Meeting expenses & communication expenses and the same is deposited in single bank account. As there is no furtherance of business in this activity and neither any services are rendered nor are any goods being traded and whether registration is required’.
Held that:- The Hon’ble Authority for Advance Ruling held the answer in negative on the ground that the members pay fees to act as volunteers in the social causes. By no means could it be said that the members pay fees to acquire services of training in leadership development.Lions Club of Poona Kothrud, In Re… — [2018] 3 TAXLOK.COM 92 (AAR-MAHARASHTRA)