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No GST on membership or admission fee

  • Jul 13, 2020 | Divita S Gupta

No GST on membership or admission fee

The Maharashtra bench of the Appellate Authority for Advance Ruling has held that membership fee or admission fee to a club does not fall under the supply of services and as such should not attract GST. The applicant, a wing of the popular Rotary Club in Mumbai city, sought an advance ruling to clarify if the amount collected as membership or admission fee would be liable to tax. In their submission of the appeal, the applicant had stated that the amount collected as membership or admission fee was utilised to cover administrative expenses of the club and was not a charge for any specific benefits to its members. In a similar case, the West Bengal bench of the AAR had ruled that such amounts would be liable to GST once again throwing light on the issue of contradictory AAR rulings across various states.

Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.

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