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GST has been introduced by Government of India on 1st July 2017. There are
lot of doubts and questions in the events community regarding GST on Event
Management Services and how it will impact the industry.
In this blog, we would try to cover the maximum number of questions which
will help answer your queries:
2) Event who’s ticket price is less than INR 250 rupees will exempted from
Goods & Services Tax. So, this is a good news for small ticketed events.
2) The reason why you need to register under GST is because online e-
commerce platforms are liable to collect TCS from you. Though government
has deferred Tax Collected at Source provision to a later date.
3) The date hasn’t been announced yet, so it’s a quick relief for event managers
still not registered under GST.
3) TCS would be collected on the base value of the supply (Base Value = Ticket
amount less applicable GST) and is to be paid to the government on monthly
basis by the 10th of succeeding month.
4) You would be able to claim credit of the TCS against your GST output
liability.
Support for GST registration for Event Managers who sell Tickets Online
As we mentioned earlier, it is compulsory for you to be registered under GST if
you sell event tickets online. We are starting a service to support you in
registering under GST.
If you want to take help for GST registration kindly fill this form : Google
Form link. This service would be open for all event managers who sell tickets
online. It is not necessary if you are Townscript user.
If you have any questions, please comment below and we will answer your
questions.
Q&A
Question Asked by Vikram Devatha : if the event organizer is a Trust
registered u/s 12AA of the Income Tax Act? As per the list of exemptions in
the GST schedule, the GST rate for such an entity would be NIL. So would
this mean that the Trust does not charge GST in its event fees, or does it mean
that any vendor sellgin goods/services to this Trust would charge NIL rate?
Answer : As per the GST provisions, services provided by an entity registered
under section 12AA of the Income tax Act, 1961 by way of charitable activities
are exempted from GST. This means, the trust shall not charge GST on
charitable activities that they carry out. However, the vendors shall charge GST
on the taxable services that they provide to the trust.
Further, please note that in case the event carried out by the trust does not fall
under the definition of charitable activity, then the GST on such fees for the
event will have to be charged. Please refer below the definition on charitable
activity:
“charitable activities” means activities relating to –
(i) public health by way of –
(a) care or counseling of (i) terminally ill persons or persons with severe
physical or mental disability, (ii) persons afflicted with HIV or AIDS, or (iii)
persons addicted to a dependence-forming substance such as narcotics drugs or
alcohol; or
(b) public awareness of preventive health, family planning or prevention of HIV
infection;
(ii) advancement of religion or spirituality;
(iii) advancement of educational programmes or skill development relating to,-
(a) abandoned, orphaned or homeless children;
(b) physically or mentally abused and traumatized persons;
(c) prisoners; or
(d) persons over the age of 65 years residing in a rural area;
(iv) preservation of environment including watershed, forests and wildlife; or
(v) advancement of any other object of general public utility up to a value of