Place of supply for event-based services
“Place of Supply” is one of the most important concepts introduced by the Goods & Service Tax. IGST Act, 2017 defines the term “Place of Supply” and is a vital term for determining the manner of taxability of any transaction under GST. Under GST law, GST could be levied either in the form of CGST, SGST, or IGST.
Determination of the type of GST leviable depends on the movement of goods. If the movement of goods takes place between two states, it is known as “Inter-State Supply” and is liable for IGST. In the case of “Intra-State Supply”, CGST/SGST is levied. However, in the case of services, no such movement takes place so it becomes pertinent to decide “Place of Supply” in the case of services carefully. In this article, we will discuss the manner of determination of “Place of Supply” in the case of event-based services.
Place of Supply for Services by way of admission to events
Section 12(6) of the IGST Act provides the provision for determination of place of supply in this case as below:
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Nature of Services rendered |
Place of Supply |
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Services provided by way of admission to
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Place of Supply shall be the place where the event is actually held or where the park or such other place is located. |
Place of Supply for services in relation to the organization of events
Section 12(7) of IGST Act, 2017 provides the provision for determination of place of supply in this case as below:
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Nature of Services rendered |
Place of Supply |
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The place of supply of services provided by way of: (a) Organization of a cultural, artistic, sporting, scientific, educational, or entertainment event including supply of service in relation to a conference, fair, exhibition, celebration, or similar events or (b) Services ancillary to the organization of any of the above events or services or assigning of sponsorship to such events |
Note: If the event is held outside India, the place of supply shall be the location of the service recipient.
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Where the event is held in more than one state and a consolidated amount is received, the supply of service shall be treated as made in each of the states. In this case, the consolidated invoice amount shall be apportioned proportionately on a reasonable basis. |
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Disclaimer: The above article is merely for informative purposes and has no legal value. Taxwink is not responsible for the correctness or accuracy of the contents of the article. Readers are requested to act diligently and under consultation with any professional before applying the information contained in this article.
