GST on Ticket selling for the Event in other state
This query is : Resolved
04 December 2019
XYZ company (Mumbai) from Event Industry, having its event in Hyderabad. contract of Ticket Selling for the event is given to Book my show (Mumbai) on commission basis. Book my show will Charge IGST on tickets & sell the tickets on behalf of XYZ Co. At the end, Book my show will pay all the collected amt to XYZ Co after deducting its Commission.
In above case, XYZ Co has to issue bill to Book my show for the whole amt at which tickets are sold by Book my show.
Query is,
Whether XYZ co has to charge IGST or CGST-SGST on the bill to be issued to Book my Show, As event will happen in Hyderabad, XYZ Co & Book my show both are Mumbai Based.
In above case, XYZ Co has to issue bill to Book my show for the whole amt at which tickets are sold by Book my show.
Query is,
Whether XYZ co has to charge IGST or CGST-SGST on the bill to be issued to Book my Show, As event will happen in Hyderabad, XYZ Co & Book my show both are Mumbai Based.
04 December 2019
CGST and SGST has to be charged as both are registered in same state.
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04 December 2019
Yes , CGST & SGST will be charged
As per provisions of the Sub – Section (7) of the section 12 of the IGST Act, place of supply for the services provided by the registered person for events provided to the registered person, shall be location of the such registered person
As per provisions of the Sub – Section (7) of the section 12 of the IGST Act, place of supply for the services provided by the registered person for events provided to the registered person, shall be location of the such registered person
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04 December 2019
Thank u CA R Seetharaman Sir and CA Anita Bhadra Mam.
04 December 2019
Is there a possibility of XYZ co. to charge IGST in any of the below scenario,
scenario 1. as if tickets sold at venue through counter sale by book my show(BMS) in hyderabad at place of venue of event
scenario 2. XYZ has taken services of BMS, & they have transferred the collected amount after deducting its commission from its hyderabad registered office/branch charging commission with IGST
do clarify if any possiblity of IGST can arise for XYZ co.?
scenario 1. as if tickets sold at venue through counter sale by book my show(BMS) in hyderabad at place of venue of event
scenario 2. XYZ has taken services of BMS, & they have transferred the collected amount after deducting its commission from its hyderabad registered office/branch charging commission with IGST
do clarify if any possiblity of IGST can arise for XYZ co.?
27 July 2024
### GST on Ticket Selling for Events in Another State
When dealing with GST implications for ticket sales for events held in different states, there are specific considerations based on where the sale occurs and the nature of the transaction. Here’s a breakdown of the scenarios you’ve provided:
#### **Scenario 1: Ticket Sales at Venue by BookMyShow (BMS)**
**Situation:**
- Tickets are sold at the venue in Hyderabad through BookMyShow (BMS), which is a ticketing platform.
**GST Implications:**
1. **Place of Supply:** Since the tickets are sold at the venue in Hyderabad, the place of supply is Hyderabad. Therefore, the applicable GST should be collected based on the Hyderabad location.
2. **Type of GST:**
- **For the sale of tickets:** The GST rate applicable depends on the nature of the event. Typically, if the event is a cultural or sporting event, it might attract **18% GST**. However, this rate can vary based on specific provisions or exemptions.
- **IGST:** If the ticket sale and the event are conducted within the same state, **CGST** and **SGST** will be applicable instead of IGST.
**Conclusion:** IGST will not be applicable in this scenario since the sale and event are happening within the same state (Hyderabad). You should charge CGST and SGST.
#### **Scenario 2: XYZ Co. Engaging BMS and Receiving Payments through BMS**
**Situation:**
- XYZ Co. hires BMS for ticketing services. BMS collects the amount from ticket sales, deducts its commission, and transfers the remaining amount to XYZ Co. The commission charged by BMS is done from its Hyderabad office.
**GST Implications:**
1. **Service by BMS:** The services provided by BMS (ticketing services) are subject to GST. BMS will charge GST on its commission.
- **If BMS is based in Hyderabad and provides the service from there,** BMS will charge **CGST** and **SGST** on its commission.
2. **IGST Scenario:**
- **When IGST Applies:** IGST is applicable if the services or goods are supplied between different states. For XYZ Co., if it is located in another state (say, Delhi) and BMS is in Hyderabad, then the transaction of the commission might involve IGST.
- **For the commission:** Since BMS’s office is in Hyderabad but XYZ Co. is in a different state, BMS would typically charge IGST on the commission amount (if the commission is paid by XYZ Co. from a different state).
**Conclusion:** In Scenario 2, IGST may be applicable to the commission charged by BMS if the services are provided across state boundaries. BMS should charge IGST on the commission if XYZ Co. is registered in a different state.
### **Summary:**
- **Scenario 1:** IGST is not applicable. CGST and SGST should be charged for ticket sales within the same state.
- **Scenario 2:** IGST may be applicable on the commission charged by BMS if the services are provided to a client in a different state.
### **References:**
- **GST Place of Supply Rules:** Refer to the GST Act’s provisions on the place of supply for goods and services.
- **Notifications on GST Rates for Events and Ticket Sales:** Check specific GST notifications related to the events and ticket sales for applicable rates.
For precise application and compliance, consult with a GST professional or tax advisor, especially when dealing with inter-state transactions and service arrangements.
When dealing with GST implications for ticket sales for events held in different states, there are specific considerations based on where the sale occurs and the nature of the transaction. Here’s a breakdown of the scenarios you’ve provided:
#### **Scenario 1: Ticket Sales at Venue by BookMyShow (BMS)**
**Situation:**
- Tickets are sold at the venue in Hyderabad through BookMyShow (BMS), which is a ticketing platform.
**GST Implications:**
1. **Place of Supply:** Since the tickets are sold at the venue in Hyderabad, the place of supply is Hyderabad. Therefore, the applicable GST should be collected based on the Hyderabad location.
2. **Type of GST:**
- **For the sale of tickets:** The GST rate applicable depends on the nature of the event. Typically, if the event is a cultural or sporting event, it might attract **18% GST**. However, this rate can vary based on specific provisions or exemptions.
- **IGST:** If the ticket sale and the event are conducted within the same state, **CGST** and **SGST** will be applicable instead of IGST.
**Conclusion:** IGST will not be applicable in this scenario since the sale and event are happening within the same state (Hyderabad). You should charge CGST and SGST.
#### **Scenario 2: XYZ Co. Engaging BMS and Receiving Payments through BMS**
**Situation:**
- XYZ Co. hires BMS for ticketing services. BMS collects the amount from ticket sales, deducts its commission, and transfers the remaining amount to XYZ Co. The commission charged by BMS is done from its Hyderabad office.
**GST Implications:**
1. **Service by BMS:** The services provided by BMS (ticketing services) are subject to GST. BMS will charge GST on its commission.
- **If BMS is based in Hyderabad and provides the service from there,** BMS will charge **CGST** and **SGST** on its commission.
2. **IGST Scenario:**
- **When IGST Applies:** IGST is applicable if the services or goods are supplied between different states. For XYZ Co., if it is located in another state (say, Delhi) and BMS is in Hyderabad, then the transaction of the commission might involve IGST.
- **For the commission:** Since BMS’s office is in Hyderabad but XYZ Co. is in a different state, BMS would typically charge IGST on the commission amount (if the commission is paid by XYZ Co. from a different state).
**Conclusion:** In Scenario 2, IGST may be applicable to the commission charged by BMS if the services are provided across state boundaries. BMS should charge IGST on the commission if XYZ Co. is registered in a different state.
### **Summary:**
- **Scenario 1:** IGST is not applicable. CGST and SGST should be charged for ticket sales within the same state.
- **Scenario 2:** IGST may be applicable on the commission charged by BMS if the services are provided to a client in a different state.
### **References:**
- **GST Place of Supply Rules:** Refer to the GST Act’s provisions on the place of supply for goods and services.
- **Notifications on GST Rates for Events and Ticket Sales:** Check specific GST notifications related to the events and ticket sales for applicable rates.
For precise application and compliance, consult with a GST professional or tax advisor, especially when dealing with inter-state transactions and service arrangements.
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