21 March 2024
Please let me know the section according to which - to avail the credit an event company need to register in the state of event performed. I am searching for that particular section but failed to find
09 July 2024
In the context of GST (Goods and Services Tax) in India, there isn't a specific section that mandates an event company to register in the state where the event is performed solely to avail input tax credit (ITC). However, there are certain relevant provisions and considerations that apply:
1. **Place of Supply Rules:** The GST law determines the place of supply for services, including event management services, based on specific rules. These rules govern whether the supply is intrastate (within the same state) or interstate (between different states).
2. **Registration Requirements:** - **Threshold Limit:** As per GST laws, businesses are required to register if their aggregate turnover exceeds the prescribed threshold limit (currently INR 20 lakhs for most states, INR 10 lakhs for special category states). - **Voluntary Registration:** Even if turnover is below the threshold, businesses can opt for voluntary registration to avail ITC and comply with GST regulations.
3. **ITC Eligibility:** - To avail ITC, the supplier (event company) must have valid tax invoices showing GST charged correctly. - ITC can be claimed on taxes paid for inputs and input services used in the course of business, subject to compliance with GST law.
4. **Event Location vs. Registration:** - While the location of the event determines the place of supply and the applicable GST (CGST + SGST or IGST), registration of the supplier (event company) is generally based on the threshold turnover criteria and not on the location of individual events.
5. **Compliance Requirements:** - Businesses must comply with GST laws regarding registration, issuance of tax invoices, filing of returns, and other statutory requirements to claim ITC correctly.
In summary, while there isn't a specific section requiring registration in the state of event performance for availing ITC, event companies must ensure compliance with GST registration requirements based on turnover thresholds and follow the place of supply rules to determine the correct GST to charge and claim ITC accordingly. For precise guidance tailored to your specific circumstances, consulting with a GST practitioner or tax advisor is recommended.
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