Advance Ruling— Section 97 of CGST Act— In the instant case, the applicant is a society registered under The Karnataka Society Registration Act, at Madikeri, which is a century old club involved in Golf activities.

They received a donation of Rs.1 Crore, during 2021-22, from a person, who is not a member of their club; the donation received with natural love and affection towards Golf and without any consideration and no publicity involved in the form of Advertising and Promotion of business.

The applicant has sought advance ruling in respect of the question that whether the donation amount is taxable under GST or not? If taxable whether the rate of GST applicable on the said donation is 18% or not?

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) 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 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 the CGST Act 2017.

Held that— The application is rejected as “inadmissible”, in terms of first proviso to Section 98(2) of the CGST Act 2017.