Gst on casual programs

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FAIROOS K (Querist)
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19 December 2019 Dear sir /mam
Under our paliative unit (registered under 12AA of Income tax )we would like to set a 3 days art,music programmes in a public place . We are expecting total receipt more than 20 lakhs whether we need to collect gst ?if yes what is the slab applicable ? Kindly reply me !

CA Anita Bhadra

CA Anita Bhadra (Expert)
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19 December 2019 Entry No.80 of notification no.12/2017-Central Tax (Rate),provides the following exemption to an entity registered under Section 12AA.
Services by way of training or coaching in recreational activities
relating to:
(a) arts or culture,

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FAIROOS K

FAIROOS K (Querist)
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19 December 2019 Mam , we are not rendering any charity services there but purly some entertainment to collect fund for the organisation. Wethere this amounts gst liability

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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27 July 2024 Yes, GST is applicable to the revenue generated from organizing art, music, or entertainment programs, even if they are conducted by an entity registered under Section 12AA of the Income Tax Act. Here’s a detailed breakdown of how GST applies to such events:

### **GST on Organizing Art and Music Programs**

1. **Applicability of GST:**
- **Events and Entertainment Services:** Organizing and hosting art, music, or entertainment programs typically falls under the category of event management services or entertainment services. Such services are subject to GST, regardless of whether the organizer is a charitable entity or not.

2. **Threshold Limit:**
- **No Threshold for GST:** The ₹20 lakhs (₹10 lakhs for special category states) threshold exemption for GST registration does not apply to the sale of services related to organizing events. This means that even if your total receipt exceeds ₹20 lakhs, you are required to collect and pay GST on the revenue.

3. **GST Rate:**
- **Entertainment Services:** The GST rate applicable for organizing art and music programs typically falls under:
- **18% GST:** This is the standard rate for most services related to entertainment, including event management services.

4. **Treatment for Charitable Trusts:**
- Even though your organization is registered under Section 12AA, the revenue generated from the art and music programs will be taxable under GST. The charitable status does not exempt you from GST on commercial activities like organizing such events.

5. **Invoicing and GST Collection:**
- You will need to issue invoices with GST charged at 18% on the amount received from participants or attendees. Ensure proper documentation and compliance with GST filing requirements.

6. **Input Tax Credit (ITC):**
- **ITC on Expenses:** You can claim Input Tax Credit (ITC) on the GST paid on expenses related to the event (e.g., venue hire, advertising, etc.) if the event revenue is taxable. This credit can be used to offset the GST payable on your receipts.

### **Relevant Notifications and Provisions:**
- **Notification No. 11/2017-Central Tax (Rate)** for the GST rates on services.
- **HSN Code**: For event management and entertainment services, you generally refer to HSN Code 9995 or similar categories depending on the specific nature of the service.

### **Key Actions:**
1. **GST Registration:** Ensure that your organization is properly registered for GST if your aggregate turnover, including such event revenues, exceeds the threshold.
2. **Issue Invoices:** Charge GST at 18% on the total amount received from participants or attendees.
3. **File GST Returns:** Include the revenue from these events in your GST returns, and claim ITC for eligible expenses.

For specific advice tailored to your situation, including compliance and detailed calculations, consider consulting with a GST professional or tax advisor.