Good Afternoon Sir,

I have one query regarding GST

One my client is association of persons (All are doctors). This association is going to hold a National Level Conference after 2 month. They are taking a sponsorship for this conference, which is around Rs.40 Lacs and Expenses of Conference is around Rs.37 lakhs.

Whether the association is required to take GST Registration?

If yes, can it take registration as Casual Person?

Reply

Dear Sir,

Sponsorship service under GST is covered under RCM i.e. liability to deposit tax with the government is on receiver of service.

If receiver of sponsorship service is any body corporate or partnership firm then such body corporate or partnership firm is liable to pay GST under Reverse charge mechanism.

As your client is providing sponsorship services in a conference, it will be fall under RCM if the said sponsorship service is supplied to anybody corporate or partnership firm.

Otherwise normal charge is applicable.