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:
Details of GST on different types of events :
GST Rates on Non – Entertainment events :
1) Non-Entertainment events like conferences, seminars, marathons, workshops & Trainings, treks & trips which used to fall under 15 % service tax category earlier will now fall under 18% GST tax category
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.
GST Rates on Entertainment events :
1) Services by way of admission to entertainment events or access to amusement facilities including exhibition of cinematograph films, theme parks, water parks, joy rides, merry-go rounds, go-carting, casinos, race-course, ballet, any sporting event such as IPL and the like would be taxed at 28% with availability of full Input Tax Credit.
2) Services by way of admission or access to circus, Indian classical dance including folk dance, theatrical performance, drama would be taxed at 18% with availability of full Input Tax Credit.
3) Exempted services – Services by way of right to admission to, –
Circus, dance, or theatrical performance including drama or ballet;
award function, concert, pageant, musical performance or any sporting event other than a recognized sporting event;
recognised sporting event; where the consideration for admission is not more than Rs 250 per person.
Ease of conducting Entertainment events:
GST is a great boon for Entertainment events. It will make life easier of entertainment events managers as now you don’t need to go to local Entertainment tax department for NOC. You can directly start selling tickets and pay the GST through the usual process.
GST’s Impact on selling event tickets online
Compulsory GST registration of Event Organisers selling tickets online:
1) As per the new rule, anyone who’s “selling tickets (or any other product) online” will have to be registered for GST. Yes! Even if your sales are less than INR 20 lacs annually, you still need to be registered for GST.
2) You may visit official website (https://www.gst.gov.in/) for GST Registration in case the same is not obtained yet.
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.
Collection of TCS by Online Ticketing Platforms :
1) Collection of TCS by online event ticketing platforms : All the e-commerce / online ticketing platforms are required to collect TAX collection at Source (i.e. TCS)
2) The rate of TCS would be maximum 2% (i.e. 1% CGST +1% SGST/UTGST).
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.
Responsibility of you as an event organiser selling tickets online :
1) You need to register and provide GST number to your online platform where you are selling tickets.
2) Prior to listing an event on any platform, you must provide us with your billing address for the event and location of the event in order to enable us to collect appropriate TCS and comply with GST Provisions
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.
Disclaimer : The information provided in the article is after detailed research and it is best to our knowledge. We don’t take any guarantee on tax slabs mentioned above. Kindly double check with the government bodies before paying tax.
Q & A
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