International service bodies seek GST relief

Office-bearers and activists of various international service organisations have asked the Union Government and the Department of Goods and Services Tax (GST) to not impose the levy on membership fees, subscriptions and admission charges.

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The appeal was made during a meeting held here on Tuesday, where participants emphasised that their organisations did not conduct business transactions.

The appeal followed a ruling by the Maharashtra Appellate Authority for GST, which exempted Rotary Club of Mumbai-Queens Necklace from paying tax on admission fee, membership and subscription charges collected from members. The ruling stated that the club did not offer business-related services like gyms or pools but used the fee to pay for administrative and meeting expenses.

Leaders of various service organisations, including Lions Club Ahmedgarh president Inderpal Singh Walia and assistant governor-elect of Rotary Club Surinder Pal Sofat, welcomed the ruling. Walia stressed that international service organisations like Rotary and Lions clubs, which brought members together for humanitarian work and the promotion of peace, should not be subject to GST on dues paid by their members.

He urged the Union Government to issue nationwide orders exempting these organisations from GST and refund taxes already collected from them.

Sofat, a former taxation officer, supported the demand, pointing out that many club members were taxpayers themselves.

It was noted that members of Rotary and Lions clubs had been paying 18% Integrated GST (IGST) on dues paid every six months to their international headquarters.

The introduction of GST seven years ago led to many middle-class members withdrawing their memberships, citing the additional financial burden.