No GST Payable On Fees Collected Towards Training In Respect Of Football, Basketball, Athletic, Cricket, Swimming, Karate And Dance: AAR

The association, M/s Navi Mumbai Sports Association, has constructed an international sports complex on land allotted by M/s CIDCO to it. The main aim and object of the association is to encourage and foster sports, cultural and social activities. It also provides health and sports education.

The applicant association is regulated and managed by an elected body, i.e., the managing committee, which looks into the affairs of the association and makes policy decisions that aim at the promotion of sports, fellowship, and fitness for individuals, families, schools, institutions, and corporate bodies.

For the promotion of sports, annual camps are held to select talents and rigorous workouts are given to make them champions. Schools and colleges provide the association's infrastructure for sports and competitions. For fellowship, it has affiliations with prestigious clubs across India and abroad for the benefit of its members. The sports complex is equipped with various facilities for achieving its objectives, which include indoor badminton, squash, table tennis courts, gym and health club, retiring rooms, football and cricket grounds, swimming pools, restaurants, conference halls, etc.

The applicant has sought an advance ruling on the issue of whether the amount collected by the applicant in respect of entrance/admission fees, which forms part of the corpus fund, annual subscription fees, and annual maintenance fees from its members is liable to GST.

Yet another issue raised was whether the amount/fees collected towards rendering training/coaching in recreational and sports activities is exempt from payment of GST under entry no.80 of notification 12/2017-CTR dated June 28, 2017.

As per Entry 80 of the notification 12/2017-CTR dated June 28, 2017 no GST is payable on the Services by way of training or coaching in recreational activities relating to arts or culture, or sports by charitable entities registered under section 12AA of the Income-tax Act.

The AAR observed that football, basketball, athletics, cricket, swimming, and karate are sports, and "dance" would be covered under arts. However, physical fitness can not be considered as 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," the AAR said.

Applicant's Name: Navi Mumbai Sports Association

Advance Ruling No. GST-ARA-16/2020-21/B-67

Dated: 25/05/2022

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