The Tamil Nadu Authority of Advance Ruling (AAR) ruled that collecting money by IITMAA from its members and receiving donations, subsidies, budgetary support from IIT is considered as Supply of Services. The applicant, IIT Madras Alumni Association is a non profit, umbrella association of persons collecting money from its members to meet expenses incurred towards its administration and other expenses related to its engagement activities conducted for members by members themselves.
The Association works to connect Alumni, supports students of the institute and builds an unforgettable institute experience through diversity of events/ programmes and services by members to themselves and the association activities are managed by extremely dedicated volunteers from the Alumni members. The applicant sought advanced ruling on the issue whether collecting money by IITMAA from its members and receiving donations/ grants/ subsidies/ budgetary support from IIT, Madras to defray expenses incurred towards administering the association and other expenses related to its engagement activities initiated by members themselves amounts to supply or not.
Consequently, whether there is any liability to comply with GST law including registration and payment of tax. The two-member bench of Manasa Gangotri Kata and Kulinjee Selvaan ruled that the activities undertaken by the applicant for its members as defined in their Memorandum of Association and Byelaws, for which membership fee and other charges are collected, are covered under the definition of Supply of services under Section 7 of CGST or TNGST Act 2017. The AAR further held that The applicant having their annual turnover above the prescribed threshold as per Section 22 of CGST or SGST Act is liable to be registered under the Act.