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GST on Quiz competition

Amit Saboo (1 Points)

26 July 2023

Hi,

I intend to organize a Quiz competition, where-in each participant pays X Rs to participate.

Assume 100 people participate and my collection is 100X.

It is a "winners-take-all" Quiz. So after deducting my management fees (3X), I pay 97X to a single winner.

My questions:

1) Is a quiz competition equivalent to games of chances like casino etc and applicable GST under new rules is 28%?

2) Do I need to pay GST on X? So is actual amount collected by me from each participant to be considered as X less GST?

3) Do I need to deduct TDS from winnings of the single participant if it crosses the threshold level?

4) Are there any GST or any other taxes on management fees charged by me?

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3 Replies

Nikita Agarwal (Semi Qualified CA) (3208 Points)
Replied 26 July 2023

3)YDS rate on winnings from games, including quiz competitions, was 30% if the prize amount exceeded Rs. 10,000. As the organizer responsible for disbursing the winnings, you would need to deduct TDS at the specified rate if the prize amount crosses the threshold level. The winner will receive the prize amount after deducting the TDS.
2) Yes, if GST is applicable to the quiz competition, you would need to pay GST on the participation fees collected from each participant (X Rs). The GST liability would be calculated based on the total consideration received from participants, which includes the participation fees.
4) GST or Other Taxes on Management Fees:
Management fees charged by you (3X Rs) would be considered as your income for providing the services of organizing the quiz competition. As such, it would be subject to income tax rather than GST. The applicable income tax rates would depend on your overall income and tax slab

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Tanu (Manager) (85 Points)
Replied 11 September 2023

If I'm charging X amount as fee to play quiz online but not paying the winner any amount , the quiz is just for fun still I need to charge GST and at what rate?