INDIAN MEDICAL ASSOCIATION, KERALA
Vs.
UNION OF INDIA & ORS.
A. No. 1659 of 2024, W. A. No. 1659 of 2024, W. A. No. 468 of 2025 & W. A. No. 1487 of 2024
HIGH COURT: Kerala
DATED: 11.04.2025
Court held no GST on services by club/association to members
Mutuality Principle – Levy of GST on services by club/association to members – Petitioner IMA runs various mutual schemes for welfare of member doctors and their families both contributing for schemes – Principle of mutuality insulate services rendered by club to its members from levy of GST on supply of services – Retroactive amendment of provisions of Section 2(17)(e) & Section 7(1)(aa) of CGST Act & KGST Act makes supply of service taxable – Constitution recognizes taxable transactions requires involvement of at least two parties(provider & recipient) – As per principle of mutuality transactions in clubs/associations where members providing services to each other do not involve two distinct entities – Supreme Court established concepts of supply and service necessitate existence of two parties as affirmed in State of West Bengal & Ors. v. Calcutta Club Ltd(2019) & Ranchi Club v. Chief Commr. of Central Excise & Service Tax(2012) – Retrospective application of tax laws violate principles of fairness and rule of law as they impose unexpected tax liabilities.
Held: No GST on services by club to members – Amendment to Section 2 (17) (e) and Section 7 (1) (aa) declared as unconstitutional and void – Retrosepctive amendments cannot be done .
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