Section Article on Taxability of Unincorporated Associations (Read with Schedule 2, Section 7(1)(aa), Section 2(17), Section 2(84) of CGST Act
Financial Year: 2021
Why there is need of Section 7(1)(aa)
Supreme Court Calcutta Club Judgement
This requires clubs and associations to not to pay GST on contributions from Members which was hitherto held to be NOT a service by the Supreme Court based on the principle of mutuality.
What is Mutuality
It is based on the proposition that an organisation cannot derive income from itself.
Lets Start with the Intention of Law
GST Applicability on Resident Welfare Associations
After that Amendment made as Section 7(1)(aa) with retrospective effect from 1st July 2017.
Thanks
CA Rahul Gupta