POS - Services in relation to admission to or organization of events etc. (Where either the supplier or the recipient is located outside India) [ Section 13(5) of IGST Act ] - GST Ready Reckoner - GST

Determination of place of supply of s ervices in relation to admission to or organization of events etc. Services in relation to admission to or organization of events etc. [ Section 13(5) of IGST Act 2017 ] S.No. Nature of Supply of services Place of Supply (POS) 1. Supply of services supplied by way of admission to, or organization of, a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events. Services ancillary to such admission or organisation POS Shall be Location where the event is actually held Note - As per section 13(6) of 13(7) of IGST Act 2017, where any services referred to in section 13(5) is supplied services are supply at more than one location, including a location in the taxable territory, its place of supply shall be the location in the taxable territory. Services are supplied in more than one State or Union territory, the place of supply of such services shall be taken as being in each of the respective States or Union territories and the value of such supplies specific to each State or Union territory shall be in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement on such other basis as may be prescribed [ under rule 9 of IGST Rules 2017 ]. Examples Mr. Praveen an event organiser , having office at Gurugram(Haryana) provided professional services to M/s Maroco ltd. who resides in Dubai, hire for launching a product under contract , one event will held is in Dubai (outside India) and another at Connaught place (Delhi) . In the View of provision of section 13(5) and 13(6) of IGST Act 2017, the place of supply of Mr. Praveen (event organiser located in India) services provided M/s Maroco (recipient located outside India) in respect of product launching event , held located in Connaught place (Delhi) and in Dubai (Outside India), is the location of event held shall be the location in the taxable territory. , i.e. Surat (Gujarat). Value of supply of service supplied in more than one State/Union territory [ under rule 9 of IGST Rules 2017 ] Value of supply of service supplied in more than one State/Union territory The value of services supplied by way of admission to or organisation of an event in each State or Union territory where the service is supplied - (when such services are supplied in more than one State/union territory) is in proportion to the value for services determined in terms of the contract or agreement entered into in this regard. Manner of determining proportionate value of service in the absence of a contract or agreement In the absence of a contract or agreement between the supplier and recipient of services, the proportionate value of services supplied in different States/Union territories (where the service is supplied) is computed in accordance with Rule 9 of IGST Rules . Rule 9 lays down that in the absence of any such contract or agreement, the value is determined by applying the provisions of rule 5 of the IGST Rule 2017 , mutatis mutandis. As per Rule 5 of IGST 2017 , 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. 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 .