POS - services in ration to Organisation of events (within India) [Section 12(7) of IGST Act ] - GST Ready Reckoner - GST

Determination of place of supply of services in relation organisation of event Services in relation to organisation of events etc. [ Section 12(7) of IGST Act 2017 ] S. No. Nature of Supply of services Place of Supply 1. Organisation of a cultural, artistic, sporting, scientific, educational or entertainment event including supply of services in relation to a conference, fair, exhibition, celebration or similar events; or Services ancillary to organisation of any of the events or assigning of sponsorship to such event. (a) If recipient person is registered person (B2B) Location of such person (b) If recipient person is other than a registered person (unregistered person) (B2C) If the event is held in India , place of supply shall be the location where the event is actually held. If the event is held outside India , the place of supply shall be the location of the recipient. Where the event is held in more than one state union territory and services are supplied to a person other than a registered person and consolidated amount charge for supply of services relating to such event Value of supply of services determined where the services are supplied to a person other than a registered person shall be taken as being in each of the respective States or Union territories, and in the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of the services in each such State or Union territory, as the case maybe, shall be determined by application of the generally accepted accounting principles. ( Rule 5 of IGST 2017 ) Examples: - Example 1: - M/s ABC Ltd. company having place of Business in Hyderabad (Andhra Pradesh), duly registered under GST, hires the services of Mr. A for event management (registered, Delhi) for organizing promotional events for the company at all the metropolitan cities. Supposed , if event will be held in outside India(l New York). Recipient is registered, then place of supply of services will be M/s ABC Ltd. i.e. Hyderabad (Andhra Pradesh) The place of supply will not change even if event will held outside India (New York), in that case place of supply is the location of recipient i.e. Hyderabad (Andhra Pradesh) Example 2: - Grand Gala events, an event management com at Kolkata, organised two award functions for Narayan Jewellers of Chennai (registered in Chennai, Tamil Nadu)at New Delhi and at Singapore. In the given case, the award function at new Delhi and Singapore are organised for Narayan jewellers (registered in Channai) Recipient is registered, then Place of Supply in both the case is location of Narayan Jewellers i.e. Channai Tamil Nadu. Example 3:- Perfect planners(Bengaluru, Karnataka), is hired by Dr. Kelvin( unregistered person based in Kochi, Kerala)to plan and organis his son wedding at Mumbai. and what will be place of supply if the wedding is to take place in Malaysia(outside India). In the given case, The services recipient is unregistered and event is held in India The Place of supply is the location where the event is actually held i.e. Mumbai If wedding is to take place outside India (Malaysia) The place of supply is the location of recipient i.e. Kochi, Kerala. 4. Where the event is held in more than one State or Union territory, in the absence of contract or agreement ( Rule 5 of IGST 2017 ) Example - An event management company E has to organise some promotional events in States S1 and S2 for a recipient R. 3 events are to be organised in S1 and 2 in S2. They charge a consolidated amount of Rs. 10,00,000 from R. The place of supply of this service is in both the States S1 and S2. Say the proportion arrived at by the application of generally accepted accounting principles is 3:2. The service shall be deemed to have been provided in the ratio 3:2 in S1 and S2 respectively. The value of services provided will thus be apportioned as Rs. 6,00,000/- in S1 and Rs. 4,00,000/- in S2 .