The central government (CG) has decided to bring a dozen amendments to the Central Goods and Services Tax (CGST) Act from 1 January, tightening the indirect tax regime further.

The changes are part of the Finance Act 2021 passed by Parliament earlier this year, but their implementation date has been announced only now. The changes cover many issues, including what constitutes a taxable supply, eligibility for tax credits, and norms for filing appeals in certain cases.

One of the amendments says that transactions by a person, other than an individual, to its members or constituents for cash, deferred payment or further valuable consideration will be treated as a taxable supply. Such transactions from the members to the entity will be treated in the same way. Experts said this would mean all clubs and associations would be subject to GST on their transactions with members.