I have described below the relevant GST rules and regulations applicable on organisation of exhibitions services at various locations in two parts:
1. GST Rules & Regulations from the perspective of Participants.
2. GST Rules & Regulations from the perspective of Exhibition Organiser.
1.1 Registration Liability
a. Participants (who want to sell, transfer, or otherwise deal in the goods and services in the exhibition) who are already registered under GST in the state of Exhibition held shall continue to use their existing GSTIN by adding such place of exhibition as an additional place of their business for making supplies at Exhibition and follow the provisions of Central Goods & Services Tax, 2017 and Rules framed thereunder.
b. Participants who are registered outside the state of Exhibition held and are not registered in the State of Exhibition held including those who pertains from the state of Exhibition held and are not registered in GST required to get themselves registered as “Casual taxable person” under Section 24(ii) of the said Act so as to discharge taxable supplies. (Relevant provisions are included below)
c. The casual taxable persons as mentioned in the preceding paragraph shall obtain a Permanent Account Number and will also generate the e-way bill in accordance with the provisions of rule 138 of the Central Goods and Services Tax Rules, 2017.
d. The casual taxable persons need to issue a tax invoice before movement or delivery of the goods as in accordance with Section 31 of CGST Act, 2017 (Read with Rule 46 of CGST Rules, 2017) for each and every supply made by them in the exhibition. (Relevant provisions are included below)
e. In respect of goods or services received by the casual taxable persons during or in the course of exhibition, the input tax credit can be availed where all the following conditions are satisfied, subject to section 17(5) of CGST Act:
a. Section 2(20) of CGST Act:
“casual taxable person” means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.
Accordingly, if participants are registered in the state of exhibition held, they will not be classified as casual taxable person and they are also not required to take any casual taxable registration. They will continue to use their existing GSTIN. And those participants who do not have any fixed place of business in the state of exhibition held, will take registration as Casual taxable person for the period the exhibition is held. Generally, casual taxable registration is applicable for the period of exhibition or 90 days, whichever is earlier, and the same can be extended to further 90 days by taking necessary approvals from the proper officer/s.
b. Section 24 of CGST Act:
Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act:
(ii) casual taxable persons making taxable supply.
There is no threshold limit for registration in case of causal taxable person, subject to Notification No. 32/2017-Central Tax dated 15.09.2017. Even person has INR 1 sale he is required to get himself registered. Casual taxable persons are also required to tax estimated GST before registration in advance and required to get registration atleast 5 days before the date of exhibition.
c. Section 31 of CGST Act:
(1) A registered person supplying taxable goods shall, before or at the time of,
(a) removal of goods for supply to the recipient, where the supply involves movement of goods; or
(b) delivery of goods or making available thereof to the recipient, in any other case, issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed.
Provided that the Government may, on the recommendations of the Council, by notification, specify the categories of goods or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed.
(2) A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as may be prescribed: Provided that the Government may, on the recommendations of the Council, by notification and subject to such conditions as may be mentioned therein, specify the categories of services in respect of which-
(a) any other document issued in relation to the supply shall be deemed to be a tax invoice; or
(b) tax invoice may not be issued.
a. Section 122- Penalty for certain offences:
Clause (xi) is liable to be registered under this Act but fails to obtain registration.
shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax evaded or the tax not deducted under section 51 or short deducted or deducted but not paid to the Government or tax not collected under section 52 or short collected or collected but not paid to the Government or input tax credit availed of or passed on or distributed irregularly, or the refund claimed fraudulently, whichever is higher.
2.1 Place of Supply
a. Section 12 of IGST Act- Place of supply of services where location of supplier and recipient is in India:
“….(6) The place of supply of services provided by way of admission to a cultural, artistic, sporting, scientific, educational, entertainment event or amusement park or any other place and services ancillary thereto, shall be the place where the event is actually held or where the park or such other place is located.
(7) The place of supply of services provided by way of-
(a) 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
(b) services ancillary to organisation of any of the events or services referred to in clause (a), or assigning of sponsorship to such events,
(i) to a registered person, shall be the location of such person;
(ii) to a person other than a registered person, shall be the place where the event is actually held and if the event is held outside India, the place of supply shall be the location of the recipient….”
Here organization of exhibition will be covered under Sec 12(7) and word used above as “location of such person” has been described below by referring the Section 2(70) of CGST Act, which states that:
b. Section 2(70)- “location of the recipient of services” means:
(a) where a supply is received at a place of business for which the registration has been obtained, the location of such place of business;
(b) where a supply is received at a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;
(c) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and
(d) in absence of such places, the location of the usual place of residence of the recipient;
Accordingly, organizer of the exhibition will issue tax invoices to the participants by charging CGST and SGST on the invoices by considering the place of service and place of supplier as Place of exhibition and discharge his GST liability by claiming the input services of Hotel invoices, decoration services etc.
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