The Tamil Nadu Authority for Advance Ruling (TN AAR) ruled that the services provided by the United Planters Association of Southern India (UPASI), a non- profit organisation to its registered members on the payment of amount towards subscription above ₹1000 is taxable.
The applicant, M/s United Planters Association of Southern India (UPASI), a mutual benefit association registered under the Tamil Nadu Societies Registration Act, 1975 established by the planters and growers of Tea, Coffee, Rubber, Pepper and Cardamom in southern India, viz.,Tamil Nadu, Kerala and Karnataka.
The object of the applicant is to conduct research and analysis for the benefit of members in whole to achieve maximum productivity and quality in their plantation activities and to represent various authorities for the welfare of members and such other welfare activities (training, meeting etc.,) collectively for their benefit.
The applicant relied on the definition of “Supply” under section 7 of Central Goods and Services Tax Act (CGST), 2017 and insisted that the applicant association and its members are one and the same, as the amount received from oneself cannot be treated as consideration.
Further stated that the applicant association is neither a related person nor a distinct person from its members, thus GST cannot be levied under section 9 of CGST Act as there is no supply under Section 7 CGST Act.
As per the submission made, the bench observed that the Annual Subscription ranges from Rs. 1000, 1200, 1400, 1600 and 1750 based on the extent of area registered.
According to the bench, the advance ruling is needed on the eligibility of the applicant to avail the benefit of Notification No. 14/2018 CT dated 26.07.2018 as a registered non-profit association engaged for the welfare of farmers under Serial number 77A.
The panel of N. Usha and R. Gopalasamy ruled that 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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