In the matter of M/s Bowring Institute (the applicant), the Authority for Advance Ruling (AAR), Karnataka has pronounced Order No. KAR ADRG 27/2021 and has held that the applicant is not liable to pay GST on subscription fees and infrastructure development fund collected from the members, unless the amended Section 7 of Central Goods and Services Tax Act, 2017 (“CGST Act”) is notified by the government.
It is to be noted that Finance Act, 2021 got assent of the president on 28th March 2021, wherein Section 108 of the said Act proposes certain changes under Section 7 of the CGST Act, 2017 but that section is yet to be notified by the government for its applicability.
The ruling of AAR Karnataka has clarified the same point by specifying that amendment in Section 7 would be applicable w.e.f. a date to be notified by the government.