Taxation of Navratri & Garba Events: GST, TDS, Income-tax & Compliance

Summary: Commercial Garba and Dandiya events during Navratri 2026 involve several GST and Income-tax implications for organisers, sponsors, artists, vendors and ticketing platforms. Admission to qualifying folk-dance events may be exempt from GST where the ticket price does not exceed ₹500 per person, while higher-priced admission generally attracts 18% GST. Separate daily passes, season passes and bundled benefits require examination to determine the applicable tax treatment. Organisers must also consider GST registration requirements, including casual taxable person registration for temporary events, and the taxation of sponsorship receipts, barter transactions, artist fees, foreign performers, venue rentals, stall licences and food sales. Charitable organisations and residential societies are not automatically exempt merely because they organise cultural events. The Income-tax Act, 2025, effective from 1 April 2026, also introduces changes to the structure and reporting of tax deduction at source provisions relevant to payments made during such events. Proper classification of transactions, maintenance of supporting documents, correct invoicing, GST compliance and timely TDS deductions are important for managing the tax obligations arising from commercial Navratri celebrations.

Introduction

Navratri 2026 will be celebrated from 11 October to 19 October. Across Gujarat, Maharashtra, Rajasthan and several metropolitan cities, Garba and Dandiya events have evolved from community gatherings into large-scale commercial events. Organisers now sell season passes, engage renowned singers and orchestras, obtain sponsorships, license food courts and use online ticketing platforms, resulting in multiple tax implications.

Two major developments warrant a fresh examination of the tax treatment of Garba events:

• GST 2.0, implemented from 22 September 2025, introduced a 40% tax rate for casinos, race clubs and IPL-type events. However, admission to ordinary entertainment events continues to be taxed at 18%, and the existing low-ticket exemption remains available.
• The Income-tax Act, 2025, effective from 1 April 2026, has reorganized TDS provisions. Earlier provisions such as sections 194C, 194J, 194H, 194R, 194O, 194E and 195 have largely been consolidated under Section 393, and TDS returns now require reporting through specified payment codes.

This article examines the GST, TDS and Income-tax implications applicable to commercial Garba events.

Key Stakeholders in a Garba Event

A typical commercial Garba event involves multiple parties:

• The organiser, who sells tickets, collects sponsorship revenue and manages the event.
• Sponsors and media partners, who provide monetary or non-monetary consideration in exchange for publicity.
• Artists, singers, musicians and DJs, who perform during the event.
• Venue owners, security agencies, décor contractors, sound and lighting vendors and stall operators.
• Online ticketing platforms facilitating ticket sales.
• Attendees purchasing admission passes.

Each participant may trigger separate GST, TDS or Income-tax consequences.

GST Implications

GST on Admission Passes

Admission to entertainment events generally falls under Heading 9996.

Admission to Garba events is normally taxable at 18% GST. However, an important exemption exists where the consideration charged for admission does not exceed ₹500 per person.

Since Garba is considered a folk dance event, admission generally qualifies for:

• GST exemption where the ticket price does not exceed ₹500 per person.
• GST at 18% where the ticket price exceeds ₹500 per person.

This threshold operates as a complete cut-off and not as a slab system. Consequently:

• A ticket priced at ₹499 attracts no GST.
• A ticket priced at ₹501 attracts GST on the entire amount.

This explains why many organisers structure ticket prices at ₹399 or ₹499 and then move directly to significantly higher price points.

Daily Passes versus Season Passes

Following disputes regarding GST on Garba passes, many organisers started offering individual daily passes instead of a single season pass.

Where each daily pass represents a separate right of admission and is genuinely sold independently, each day’s admission should be tested separately against the ₹500 exemption threshold.

Organisers should ensure:

• Daily passes have independent pricing.
• Daily passes are valid for only one evening.
• Daily passes are not artificially bundled into a season pass arrangement.
• Ancillary benefits such as food coupons, VIP access, merchandise or parking are separately priced.

Improper bundling may create composite supply or mixed supply issues under GST.

Charitable and Society Garba Events

The charitable nature of an organisation does not automatically exempt ticketed Garba events from GST.

Where admission passes are sold for monetary consideration, GST implications must be examined independently of the organiser’s charitable status.

Residential society Garba events generally involve lower GST exposure where participation is limited to members and no separate admission charge is recovered. However, where passes are sold to outsiders, the event may be regarded as a commercial activity.

Casual Taxable Person Registration

Many organisers conduct Garba events at temporary venues where they have no fixed place of business. In such cases, they may qualify as a “Casual Taxable Person” under GST law.

Practical implications include:

• GST registration must generally be obtained before commencement of the event.
• Registration is temporary in nature.
• Advance deposit of estimated GST liability may be required.
• Composition Scheme benefits are unavailable.

Even where admission passes are exempt, sponsorship income and stall fees frequently create taxable supplies requiring GST registration.

GST Treatment of Other Common Transactions

Sponsorship Income

Sponsorship received by an organiser is generally taxable.

Where the sponsor is a company or partnership firm, GST may become payable by the sponsor under the Reverse Charge Mechanism (RCM). Organisers should carefully evaluate whether GST should be charged on the invoice.

Barter Arrangements

Barter transactions are common in Garba events.

For example:

• Complimentary passes may be given in exchange for media publicity.
• Branding rights may be exchanged for services.

Such arrangements are generally treated as taxable supplies and should be valued at open market value.

Artist Fees

Performance fees received by artists performing folk or classical art forms may qualify for GST exemption where specified conditions are satisfied and consideration does not exceed prescribed limits.

However, management companies and artist agencies supplying services to organisers generally charge GST at 18%.

Foreign Artists

Payments to foreign artists often result in the import of services.

Accordingly:

• GST under reverse charge may become payable by the organiser.
• Input Tax Credit may be available where the organiser makes taxable outward supplies.

Venue Rent and Event Services

GST generally applies to:

• Ground and venue hire charges.
• Sound and lighting services.
• Security services.
• Stage construction.
• Décor services.

Registered organisers may ordinarily claim Input Tax Credit on these expenses where conditions are satisfied.

Stall Fees

Licence fees recovered from food vendors and other stall holders typically attract GST at 18%.

Food and Beverage Sales

Where organisers themselves supply food and beverages, restaurant-related GST provisions may apply. In many cases GST is payable at 5% without Input Tax Credit.