2025-VIL-207-AAR
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SGST Advance Ruling Authority

GST – West Bengal AAR – Definition of "body corporate" - Whether the applicant, a non-profit organization incorporated under the Companies Act, is a "body corporate" for the purposes of Notification No. 13/2017 - Central Tax (Rate) dated 28.06.2017, particularly in relation to the liability for payment of GST on sponsorship services provided by it - HELD - It is clear from the inclusive definition of “body corporate” in clause (11) of Section 2 of the Companies Act, 2013, only two kinds of entities are excluded from the definition of the term viz. a co-operative society registered under any law relating to co-operative societies, and any other body corporate (not a company as defined in the Companies Act, 2013) which the Central Government may specify in this behalf - The applicant is neither a co-operative society registered under any act related to co-operative societies of the country nor the company has been notified by the Union Government under Section 2(11) of the Companies Act, 2013. The applicant was incorporated on 16.10.1909 as a company under the erstwhile Companies Act, 1882 and was registered under the same act on 25.02.1911. The applicant satisfies the definition of “company” as well as “body corporate” as defined in the Companies Act, 2013 - The legal form of incorporation, rather than the profit-making nature of the entity, is the determinative factor in classifying an entity as a "body corporate" under the GST law. Further, the applicant cannot be treated as a "trust" for GST purposes, as it is neither registered under the Indian Trusts Act, 1882 nor has the characteristics of a trust under the law - The services provided by the applicant by way of sponsorship to any body corporate or partnership firm located in the taxable territory will not qualify for the Reverse Charge Mechanism. Accordingly, the GST liability on such sponsorship services is to be discharged by the applicant under the forward charge – Ordered accordingly
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