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Order Date – 27 March 2023

Facts –

The Applicant, M/s United Planters Association of Southern India, is an apex body of planters of tea, coffee, rubber, pepper and cardamom in the Southern States of India viz. Tamil Nadu, Kerala, and Karnataka in existence since 1893.
They receive membership fees and subscription amounts from its members which is utilized for achieving its objective and to meet out administration and other running cost of the association.

Issue –

Whether the applicant is eligible to avail the benefit of Notification No. 14/2018 - Central Tax dated 26.07.2018 as the non-profit association?

Order –

The AAR observed that it is evident from the submissions of the applicant that their activities are squarely covered under scope of supply and their contention that applicant association is neither a person distinct from the member nor a related person is laid to rest by retrospective amendment of Section 7 by insertion of clause (aa) to sub-section (1) and explanation with effect from 01.07.2017
It was held that as per the provisions of GST Law, the applicant being a registered society, providing services to their members, who are distinct from the applicant and registered as member on payment of any amount towards subscription/contribution, is a supply of service and is accordingly taxable except subscription received from natural persons who are farmers simpliciter and the annual subscription for all membership is up to Rs. 1000/-.
Therefore, the applicant is eligible to claim exemption vide serial number 77A of Notification No. 12/2017 Central Tax (Rate) as amended by Notification No. 14/2017 Central Tax (Rate) in respect of subscription received from natural persons who are farmers simpliciter and the annual aggregate subscription amount for all membership, under various nomenclature, up to Rs. 1000/-.

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