The Rajasthan Authority of Advance Ruling ruled that GST shall be payable on Services provided by the Club to its members.
The applicant is a club which is engaged in providing various services such as short term accommodation, restaurant, recreational services and has GST registration number 08AAABU0007F1ZZ. The applicant intends to seek clarification on the applicability of GST on various services provided by the club to its members in light of recent decision given by the Hon’ble Supreme Court in the case of state of west Bengal & others vs Calcutta Club Limited in civil appeal No. 4184 of 2009.
The applicant sought advance ruling on the issue whether service tax is payable on the services provided by clubs to its members.
The coram of J. P. Meena (Central Tax) and M. S. Kavia (State Tax) stated that the decision given by the Supreme Court in the State of West Bengal & Ors. v. Calcutta Club Limited for erstwhile Service tax regime, is no more applicable on account of specific overriding effect over judgments.
The coram held that the Services provided by the Club to its members is taxable as per clause (aa) of sub-section (1) of Section 7 of the CGST Act, 2017 w.e.f. July 1, 2017.
The coram further ruled that GST is payable on the services provided by clubs to its members.