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GST applicable on sponsorship

10 May 2019

dear seniors,

can you help,
does GST is applicable on sponsorship received from outside India and event held in India.
if yes, it will be forward charge or RCM?

thanks, Nadeem

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15 Replies

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 10 May 2019

As per Section 13(5) of IGST Act , the POS is where the event is held , so CGST/SGST will be applicable.

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pritesh (CA Final student) (7101 Points)
Replied 10 May 2019

Yes Rcm is applicable if you are a company or partnership firm

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 11 May 2019

@ Pritesh ji

The supplier & services provided both in Non Taxable territory , hence its non taxable , No GST, No RCM application

Padmanathan Kv (2127 Points)
Replied 11 May 2019

@ Pankaj ji the PoS is in India and the supplier is o/s India i think it will be taxable and on RCM basis. pls confirm

Mohd Nadeem (130 Points)
Replied 11 May 2019

padmanathan sir, agree with u, so in that case we can claim ITC on it?

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Padmanathan Kv (2127 Points)
Replied 11 May 2019

definitely ITC will be available. You can raise a self-invoice and take ITC

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 11 May 2019

Sorry , i wrongly replied in adressing to Mr Pritesh .
There is no question of RCM , simply raise Tax Invoice & charge CGST/SGST .
RCM is applicable on Inward supply , & you are providing Services (As event organiser) & getting payment for same .

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Padmanathan Kv (2127 Points)
Replied 11 May 2019

@ pankaj ji I think your view is correct and agree to it. So the company in India will be the supplier of service ( they are receiving consideration as sponsorship money). Also the place of supply is in India. Hence taxable to the Indian Company but no question RCM. Just need to raise CGST and SGST invoice

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 11 May 2019

Dear padmanathan The supplier is india who organise the event ,& sponsor the Recepient is outside india , there will No RCM , the orgainser (Supplier ) will raise tax invoice on forward charge .

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 11 May 2019

Dear padmanathan The supplier is india who organise the event ,& sponsor the Recepient is outside india , there will No RCM , the orgainser (Supplier ) will raise tax invoice on forward charge .

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CA Shikha Sharma (Ceo) (3869 Points)
Replied 11 May 2019

RCM applicable for sponsorship
not for sporting events

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Mohd Nadeem (130 Points)
Replied 11 May 2019

analysing above we as a indian company receiving consideration I lieu of sponsorship for organising event which not sporting event.
being a domestic company we have to raise invoice under forward charge.
and we cannot avail ITC on it?
correct if am wrong, please

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