The Maharashtra Advance Authority for Ruling (AAR) bench consisting of Rajiv Magoo, Additional Commissioner of Central Tax, and T R Ramnani, Joint Commissioner of State Tax held that GST is not leviable on Fees collected for training in respect of Football, Basketball, Athletics, Cricket, Swimming, Karate, and Dance.
The applicant, M/s Navi Mumbai Sports Association is a Non-Government Sports Organization and Public Charitable Trust registered under The Societies Registration Act, 1860 and The Bombay Public Trust Act, 1950. The Association holds a valid registration under section 12AA of the Income Tax Act, 1961. An International Sports complex was constructed by the association on the land allotted to it by M/s CIDCO. The main aim and object of the Association are to encourage and foster sports, and cultural and social activities. The sports complex is equipped with various facilities for achieving its objectives, which include indoor badminton, squash, table tennis courts, gym, health club, retiring rooms, football and cricket ground, swimming pools, restaurants, conference halls, etc. The Applicant, with a view to promoting their objectives, provides training/coaching on basic/advanced courses to members and non-members for various sports activities such as badminton, table tennis, squash, swimming, cricket, basketball, football, dance, etc, and charges fees for the same.
The AAR observed that “football, basketball, athletics, cricket, swimming, and karate are sports, and “dance” would be covered under arts. However, physical fitness cannot be considered a sport, art, or culture. Further, the term “summer coaching” is a general term which cannot cover sports, arts, or culture. We find that training and coaching in football, basketball, athletics, cricket, swimming, karate, and dance by the applicant would be covered under Entry No. 80 of notification 12/2017-CTR dated June 28, 2017, as amended, and “physical fitness” training and “summer coaching” are not covered under the said Entry No. 80 mentioned above. Therefore, the benefit as per Entry No. 80 of notification 12/2017-CTR dated June 28, 2017, as amended will be available to the applicant only in respect of training and coaching in respect of football, basketball, athletics, cricket, swimming, karate, and dance.”
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