{"id":67191,"date":"2025-02-18T17:24:58","date_gmt":"2025-02-18T11:54:58","guid":{"rendered":"https:\/\/piceapp.com\/blogs\/?p=67191"},"modified":"2025-02-18T17:25:01","modified_gmt":"2025-02-18T11:55:01","slug":"gst-on-membership-fees","status":"publish","type":"post","link":"https:\/\/piceapp.com\/blogs\/gst-on-membership-fees\/","title":{"rendered":"GST on Membership Fees"},"content":{"rendered":"\n<div class=\"wp-block-group has-background\" style=\"background-color:#f2f5f9\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading\"><strong>Key Takeaways<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>GST Rate<\/strong> \u2013 Membership fees attract 18% GST in India.<\/li>\n\n\n\n<li><strong>GST Type<\/strong> \u2013 CGST &amp; SGST apply for intrastate, IGST for interstate services.<\/li>\n\n\n\n<li><strong>SAC Code<\/strong> \u2013 Classified under SAC 9995, covering various membership groups.<\/li>\n\n\n\n<li><strong>Exemption<\/strong> \u2013 FIFA U-17 Women\u2019s World Cup 2020-related services may be exempt.<\/li>\n\n\n\n<li><strong>Tax Responsibility<\/strong> \u2013 Organisations must collect and remit GST to the government.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p>In accordance with the Goods and Services Tax (GST) regulations, indirect tax applies to the supply of goods and services in India. The type of GST varies based on whether the supply of goods or services or both is within the state border or interstate.<\/p>\n\n\n\n<p>Similarly, as a membership subscription is a form of supply of service, it attracts GST. GST on membership fees needs to be collected by the membership organisation or membership <a href=\"https:\/\/recurly.com\/\" target=\"_blank\" rel=\"noopener\">subscription provider<\/a>. The concerned membership organisation is further liable to remit the collected GST to the government to contribute to the Indian Government\u2019s tax revenue collection. Learn in detail about the applicable GST rate on membership subscription fees here.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Is Goods and Service Tax?<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"506\" src=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/02\/What-Is-Goods-and-Service-Tax.jpg\" alt=\"What Is Goods and Service Tax?\" class=\"wp-image-67245\" title=\"\" srcset=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/02\/What-Is-Goods-and-Service-Tax.jpg 900w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/02\/What-Is-Goods-and-Service-Tax-300x169.jpg 300w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/02\/What-Is-Goods-and-Service-Tax-150x84.jpg 150w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/02\/What-Is-Goods-and-Service-Tax-768x432.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption><\/figcaption><\/figure>\n\n\n\n<p>Goods and Services Tax (GST), introduced by the Indian Government in 2017, has replaced existing indirect taxes such as value-added tax (VAT), service tax, <a href=\"https:\/\/groww.in\/p\/tax\/excise-duty\" target=\"_blank\" rel=\"noopener\">excise duty<\/a> and others. The government levies GST on the supply of services or goods based on the type and scope of supply at variable rates.<\/p>\n\n\n\n<p>While intrastate supplies include CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax) in equal proportion, interstate supplies include Integrated Goods and Services Tax (IGST). In India, the applicable GST rates are 0%, 5%, 12%, 18% and 28%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Are Membership Organisations and Membership Fees?<\/h2>\n\n\n\n<p>Membership organisations in India are professional organisations or <a href=\"https:\/\/www.nerdwallet.com\/article\/small-business\/business-entity\" target=\"_blank\" rel=\"noopener\">business entities<\/a> allowing distinct persons to subscribe to their services or community. It promotes the association of similar-minded people to engage in a shared mission and provision of facilities through activities, industry work and profession.<\/p>\n\n\n\n<p>These organisations charge a membership fee to render their services to subscribers for furtherance of business and collecting maintenance expenses. The membership model focuses on recurring and periodic fee payments (periodical subscriptions). <\/p>\n\n\n\n<p>For instance, annual subscription fee, annual games fee and admission fee with respect to admission of an individual to a membership organisation to allow individuals to participate in valuable consideration.<\/p>\n\n\n\n<p>As per the GST laws in India, a supply of service or supply of activities is subject to GST applicability. In other words, a transaction in connection to the supply of services falls under GST laws. <\/p>\n\n\n\n<p>Usually, the government levies an 18% GST on membership services over and above the subscription fees. Thus, a membership subscription is one of the taxable supplies where the entire membership fee is subject to GST.<\/p>\n\n\n\n<p>The membership organisations are liable to pay the collected GST to the government to contribute to the government&#8217;s tax revenue generation. Notably, the taxability of membership is a crucial factor that individuals (a taxable person) with <a href=\"https:\/\/developdiverse.com\/deib_dictionary\/privilege\/\" target=\"_blank\" rel=\"noopener\">membership privilege<\/a> should consider for payment reference.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Membership Organisation Services and GST Applicability<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"506\" src=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/02\/Membership-Organisation-Services-and-GST-Applicability.jpg\" alt=\"Membership Organisation Services and GST Applicability\" class=\"wp-image-67243\" title=\"\" srcset=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/02\/Membership-Organisation-Services-and-GST-Applicability.jpg 900w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/02\/Membership-Organisation-Services-and-GST-Applicability-300x169.jpg 300w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/02\/Membership-Organisation-Services-and-GST-Applicability-150x84.jpg 150w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/02\/Membership-Organisation-Services-and-GST-Applicability-768x432.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption><\/figcaption><\/figure>\n\n\n\n<p>Here is the list of GST applicable on membership fees:<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>SAC Code<\/strong><\/td><td><strong>Description of Services<\/strong><\/td><td><strong>Associated Individuals<\/strong><\/td><td><strong>Cess %<\/strong><\/td><td><strong>GST Rate<\/strong><\/td><\/tr><tr><td>9995<\/td><td>Service of Membership Organisation<\/td><td rowspan=\"13\">If the Sports Director or Ministry of Youth Affairs and Sports certify that the concerned services are directly or indirectly related to FIFA U-17 Women&#8217;s World Cup 2020<\/td><td rowspan=\"13\">Nil&nbsp;<\/td><td rowspan=\"13\">18%<\/td><\/tr><tr><td>999511<\/td><td>If Businesses and Employers Organisations furnished Services<\/td><\/tr><tr><td>999512<\/td><td>If Professional Organisations furnish services<\/td><\/tr><tr><td>999520<\/td><td>If Trade Unions furnish services<\/td><\/tr><tr><td>999591<\/td><td>Religious Services<\/td><\/tr><tr><td>999592<\/td><td>If Political organisations furnish services<\/td><\/tr><tr><td>999593<\/td><td>In case Human Rights Organisations furnish services<\/td><\/tr><tr><td>999594<\/td><td>Cultural and Recreational Associations<\/td><\/tr><tr><td>999595<\/td><td>If Environmental Advocacy Groups furnish services<\/td><\/tr><tr><td>999596<\/td><td>If Youth Associations provide services<\/td><\/tr><tr><td>999597<\/td><td>Civic and Social Organisations<\/td><\/tr><tr><td>999598<\/td><td>Homeowners Associations<\/td><\/tr><tr><td>999599<\/td><td>If other Membership Organisations like N.E.C (North Eastern Council) provide services<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Notably, the previous and GST rate applicable remained the same for all the membership organisations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>GST on membership fees is 18% in India for all categories of membership subscription services. The subscribers need to pay the applicable GST at the mentioned rate along with the <a href=\"https:\/\/www.digitalroute.com\/resources\/glossary\/subscription-pricing\/\" target=\"_blank\" rel=\"noopener\">subscription fees. <\/a><\/p>\n\n\n\n<p>However, membership subscription fees do not attract cess if the Sports Director or the Ministry of Youth Affairs and Sports (separate persons) certify that the services are associated (directly or indirectly) with FIFA U-17 Women&#8217;s World Cup 2020 with no profit motive.<\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#f2f5f9\">\ud83d\udca1If you want to streamline your payment and make GST payments via credit card, consider using\u00a0<a href=\"https:\/\/piceapp.com\/\">the PICE App<\/a>. Explore the PICE App today and take your business to new heights.<\/p>\n\n\n\n<p><strong>FAQs<\/strong><\/p>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1739866756753\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong><strong>Is GST applicable to all types of membership fees?<\/strong><\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, membership fees are considered a taxable service and attract an 18% GST, except for specific exemptions like FIFA U-17 Women\u2019s World Cup 2020-certified services.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1739866904610\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong><strong>Which type of GST applies to membership fees?<\/strong><\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>For intrastate services, CGST and SGST are levied in equal proportion, while interstate membership services are subject to IGST.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1739866912100\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong><strong>What is the SAC code for membership organisations?<\/strong><\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Membership services fall under SAC code 9995, covering professional bodies, trade unions, cultural associations, and other membership-based entities.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1739866919837\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong><strong>Who is responsible for collecting and remitting GST on membership fees?<\/strong><\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The membership organisation providing the service must collect GST from members and remit it to the government as part of tax compliance.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1739866927049\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong><strong>Are there any GST exemptions on membership fees?<\/strong><\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Generally, GST applies to all membership fees, but exemptions exist for certain sports-related services certified by the Ministry of Youth Affairs and Sports<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Key Takeaways In accordance with the Goods and Services Tax (GST) regulations, indirect tax applies to the supply of goods and services in India. The type of GST varies based on whether the supply of goods or services or both is within the state border or interstate. Similarly, as a membership subscription is a form [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":67242,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-67191","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst"],"_links":{"self":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts\/67191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/comments?post=67191"}],"version-history":[{"count":10,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts\/67191\/revisions"}],"predecessor-version":[{"id":67266,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts\/67191\/revisions\/67266"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/media\/67242"}],"wp:attachment":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/media?parent=67191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/categories?post=67191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/tags?post=67191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}