11 July 2024
For sponsorship received by an engineering college for a fest, the GST rate and HSN code would depend on the nature of the sponsorship service provided. Typically, sponsorship services fall under the category of services and are classified under SAC (Services Accounting Code) rather than HSN (Harmonized System of Nomenclature) codes which are used for goods.
Here are the key points to determine the GST rate and SAC for sponsorship received by an engineering college:
### 1. Nature of Sponsorship:
- **Registration Fee for Stalls:** If the sponsorship involves registration fees for stalls arranged during the college fest, it would be considered a service provided by the engineering college to the sponsors.
### 2. GST Rate:
- **GST Rate:** The GST rate for services provided by educational institutions (including engineering colleges) is typically 18%. However, certain services provided by educational institutions are exempt or attract a lower rate based on specific notifications.
- **Exemption or Lower Rate:** There could be exemptions or concessional rates available under GST for specific types of educational services. It's advisable to check the latest GST notifications or consult a GST professional to determine if any specific exemptions or lower rates apply to sponsorship income received by educational institutions.
### 3. SAC (Services Accounting Code):
- **SAC for Sponsorship Services:** Sponsorship services generally fall under SAC 999799 which covers "Other Services n.e.c." (not elsewhere classified). This SAC code is typically used for services not specifically listed under other SAC codes.
### Example:
If the engineering college receives sponsorship in the form of registration fees for stalls during its fest, it would raise an invoice to the sponsor for the amount received. The invoice should mention the SAC code 999799 and the applicable GST rate (typically 18% unless exempt or lower rate applies).
### Conclusion:
To summarize, for sponsorship received by an engineering college for fest activities like registration fees for stalls, the GST rate is generally 18% and the SAC code is 999799. However, it's essential to verify the specific details and consult with a GST professional to ensure compliance with current GST regulations and any applicable exemptions or concessions.
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