Meaning of  sponsorship Services

sponsorship services means  Naming of an event after the sponsor; Displaying the sponsor’s company logo or trading name; Giving the sponsor exclusive or priority booking rights; Sponsoring prizes or trophies for competition. Sponsorship services aim is to display its affiliation to even or organization. This allowed to gain publicity. In this article we discussion about GST  and SAC Code on sponsorship services.

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GST Registration for sponsorship Services

Section 22 to 25 specifies the persons who are liable to obtain GST Registration.

Every person who is engaged in supply of sponsorship services services  will  be liable to be registered under the GST if

• Aggregate Turnover in a financial year of taxable supply of goods or services exceeds Rs. 20 Lac or (Turnover > 20 Lac)
• Aggregate Turnover in a financial year of taxable supply of goods or services exceeds Rs. 10 Lac if person is located at North Eastern area ( Manipur , Arunachal Pradesh , Nagaland , Meghalaya , Assam , Tripura & Mizoram , Sikkim , Jammu & Kashmir , HimachalPradesh & Uttarakhand ) ( Turnover > 10 Lac )

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What is GST Rate on sponsorship Services Event ?

Group 99839	Other professional, technical and business services.	GST Rate
998397	Sponsorship Services & Brand Promotion Services	18%

 

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GST Return filing for sponsorship Services ?

• GSTR 3 B Each Month by 20 th of next month.
• GST registration holder would have to file GSTR-1 ( based on turnover its monthly or quarterly )
• Finally, annual GST return must be filed by all GST registered entities on/before the 31st of December.

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GST Credit ITC For sponsorship services Provider 

A registered taxpayer under sponsorship services can claim the credit of taxes paid by him on inward supplies if he has a valid invoice and taxes are deposited by the supplier to the Govt. The input tax credit so claim by a recipient shall be reversed if he doesn’t make payment of the amount towards the value of supply of goods or services along with tax payable thereon within a period of 180 days.

Conditions to Claim GST ITC Credit  

1. Recipient has valid tax invoice / Debit Note / Bill of Entry
2. Goods or Services are received
3. Taxes are paid to Govt. ( From Supplier side )
4. GST Return is filed

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When GST become Payable for Sponsorship Services?

Earliest of the following date shall be considered as time of supply for Sponsorship Services.

• When invoice is issued
• When invoice is not issued in 30 days from date of supply of service
• Date of receipt of services in books of account of service recipient

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What is SAC Code For Sponsorship Services ?

SAC Code For Sponsorship services event as below. SAC code for sponsorship services   fall under two categories of the SAC headings. First two digits are same for all, Next two SAC code Signify as major service and last code Signify detailed nature of service. SAC Code For Veterinary Services as below.

Group 99839	Other professional, technical and business services.
998397	Sponsorship Services & Brand Promotion Services

 

Read GST Return Filing for sponsorship Services

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