COMMUNITY INSIGHTS

Topic

Publish Date

GST on Clubs/Societies and Their Members: Has Mutuality Lost Its Place?

Clubs and societies—be it social, recreational, or sports-oriented—have long been structured around the principle of mutuality. Members pool resources for collective benefit, and the entity merely manages these funds to provide facilities or services. For decades, this relationship was considered non-commercial, insulating such transactions from tax. However, the advent of the Goods and Services Tax (GST) regime,................... Read More

 13.05.2025

CASE LAW

Particulars

One liner
2025(04)LCX0049

Kerala High Court

Indian Medical Association

 Section 2(17)(e) and Section 7(1)(aa) and the Explanation thereto of the CGST & KGST Act, 2017 are declared as unconstitutional and void being ultra vires the provisions of Article 246A read with Article 366 (12A) and Article 265 of the Constitution of India, principle of mutuality would insulate services rendered by a Club/Association to its members from the levy of GST on supply of services.
 
2024(07)LCX0277

Kerala High Court

Indian Medical Association

 Court dismisses the challenge to the constitutionality of GST Act Section 7(aa), but limits its operation to prospective effect from 01.01.2022, and remands the matter for assessment of individual activities.