Club services to its members cannot attract GST: Kerala High Court

The Kerala High Court has ruled that services provided by a club to its members cannot attract Goods and Services Tax (GST). This judgment is based on the principle of mutuality, which suggests that there is no sale or service involved when a collective entity provides amenities or services to its own members for a common benefit, as there is no transaction between two distinct persons. The High Court's decision provides significant relief to various types of clubs and associations that operate on a membership basis, clarifying their GST obligations concerning the services and facilities offered exclusively to their members. This ruling aligns with previous interpretations of GST laws in relation to the principle of mutuality.