Can goods and services be tax levied on the service provided by association to its members?



Proposed Amendment under the Finance Bill 2021

Clause 99 of the Bill seeks to amend section 7 (1) of the CGST with retrospective effect from July 1, 2017, by inserting a new sub-clause (aa). The amendment seeks to ensure levy of tax on activities or transaction involving supply of goods and services by any person, other than an individual, to its member or constitutes or vice versa, for cash, deferred payment or other valuable consideration.