The actions of the participators and contributors must be in furtherance of the mandate of the association. concurred with Hon. As in the past, it is desired by us that the entire contribution  made by our bank to the Banking Codes and Standards Board of India in the form of membership fees be credited to the  Corpus of the Banking Codes and Standards Board of India. As such, till such time as the issue is settled by the Apex Court, the Principle of Mutuality should be extended to the levy of GST and no GST is leviable on the activity of the Applicant under the Principle of Mutuality even under the CGST Act, 2017 and the Rules made thereunder. The member banks are formed under The Banking Regulation Act, 1989 and has a separate legal entity. To maintain close contacts with Indian Banks’ Association, other similar institutions, Boards and organizations having similar objects or allied objects by way of subscription, enrolment as a member thereof, financial or other kind of assistance, collaboration, cooperation and in any manner as the Society may deem fit. We find that they have submitted that the RBI guidelines are for the benefit of people who undertake any transaction with banks such as their Account Holders etc. 1st April, 2020 and last date for payment of the same will be 30th June, 2020. To advertise and publish promotional literature in newspapers and otherwise about the Codes and Standards for the guidance & knowledge of the public through Web site, advertisements in newspapers, magazines, journals, TV/Radio, hoardings or any other mode which the Society may deem fit. Permit holder dues are calculated using a base rate of $500 and multiplied by the square root of the total number of members working under the permit holder’s Permit to Practice. On the backdrop of the above it is evident that the BCSBI fulfills the ingredients as per the relevant definition under section 2 as follows: consideration” in relation to the supply of goods or services or both includes—. These guidelines are for the benefit of people who undertake any transaction with banks such as their Account Holders etc. The activity of the Applicant does not get covered under any of the Schedules I, II or III of the CGST Act, 2017 to constitute a ‘Supply’. H. S. Sharma, Sr. V.P. It is only the interest, if any accrued on the same, which can be used for meeting the objects of the Trust. Mere change in taxing Statute cannot make change in fundamental concepts. The other expenses are related to administration like Fees and contributions to District or Secretariat Rotary, other administrative expenses like printing, stationery, audit fee, etc. In their further submission, the applicant at one point has stated that “Any supply is meant to be in the course of business or furtherance of the same. Principle of Mutuality is guided by the gospel that “No man can trade with hints* he cannot make, in what is its true sense or meaning, taxable profit by dealing with himself”. The Banking Codes And Standards Board Of India (hereinafter called as BCSBI) It is observed that the BCSBI was formed in the year 2006 by the RBI and initially it was fully funded by RBI, however from 2007 the BCSBI started collecting annual subscription fees from the member banks. Individual PACFA Membership 2020/21 Fee (inc. GST) Annual Membership fees* Clinical $387 Provisional $387 Provisional - New Graduate $289 Late renewal after 31 July (Clinical/Provisional) $50 Student $80 Affiliate $193 2nd College membership $85 … It is their own fund, which is used for creating public awareness and consumer guidance/ protection programmes regarding their banking rights. 2012 (26) S.T.R. The Membership is voluntary. [para 7]. In the present case for BCSBI the member banks have not come together pulling their resources to form the board like BCSBI to be used for the benefits of the members, there is no compulsion under any enactment for the member banks to become the member of BCSBI. The main issue before us is as to whether GST is liable to be paid on the contribution made by Members towards “Annual Membership Fees and registration fees” to the Corpus Fund of the applicant and recurring expenditure being incurred by the applicant. We have gone through the facts of the case. STATEMENT REGARDING INTERPRETATION OF FACTS: The following facts pertaining to the Applicant’s organization and its activities are relevant to consider the activity of the Applicant as not eligible to GST: a. Whether the activity of Applicant is to be termed as “Business” as provided under Section 2 (17) (e) of the CGST Act, 2017? As such, till such time as the issue is settled by the Apex Court, the Principle of Mutuality should be extended to the levy of GST and no GST is leviable on the their activity even under the CGST Act, 2017 and the Rules made thereunder”. 2016-17, have already been submitted during the Final Hearing which was held on 25-04-2018, which establishes that the Contributions received from Banks is not forming part of income of the Applicant i.e. Mutuality is based on the principle that one cannot trade with oneself and cannot make a profit out of oneself. “Principle of Mutuality” has its implication in all statute as the foundation fact as there is no existence of two separate legal entities. It cannot be restricted only in a narrow compass as lease, rental, barter, etc. (d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II. Students can also join the 4+1 scheme & enrol themselves till one year after the passing out year. It is respectfully submitted that in view of the submissions made (in the Application, during the Personal Hearing and on the basis of the above additional submissions) on the facts of the case and the legal provisions related thereto, the Advance Ruling Authority may decide the above framed/referred questions and oblige. Annual Dues. IT SHOULD BE IN THE COURSE OF OR IN FURTHERANCE OF BUSINESS: For any activity to be considered as “Supply”, these 3 elements have to be fulfilled. Such provision of facilities or benefits to its Member Banks, by the applicant is squarely covered under Section 2 (17) (e) of the GST Act. – HELD: In view of mutuality, if club provides any service to its members, it is not a service by one legal entity to another, and is not liable to Service tax – Explanation to Section 65 of Finance Act, 1994 that ‘taxable service includes any taxable service provided or to be provided by any unincorporated association or body or persons to a member’, found to be similar to Explanation-1 to Section 2(n) of Madras General Sales Tax Act, 1959 including within definition of sale any transfer of property by club to its members, considering which Apex Court in Young Men’s Indian Association (1970 (1) SCC 4621 had held supply of preparations by club to its members was not a sale as there was no transfer of property from one to another, and even though club had distinct legal entity, it was acting only as an agent for its members – Sections 65(66) and 65(67) of Finance Act, 1994. 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