Consideration of sponsorship service in GST for RCM self-generating invoice

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This discussion addresses how to account for sponsorship services provided to a college sports event, involving both goods and cash. The core question is whether the value of the goods should be included in the RCM invoice or treated separately. The consensus is that RCM applies only to the service value, and the value of goods should be handled distinctly.

Bhawna Dubey

Bhawna Dubey (Querist)
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11 April 2023 One of my clients (Pvt Ltd) transferred goods worth Rs 10 lakh plus Rs 25000 in cash under sponsorship services in a college sports event. Now how can I show it in books?
Is value of goods being also to be included in Rcm invoice or ITC of goods is to be reversed separately in GSTR-3B and RCM invoice is to be made up of only Rs 25000?
How do I show this transaction??