gst on sponsorship and brand promotion
This query is : Resolved
vishal verma
(Querist)
18 August 2017
pl provide sac code and rate of gst applicable for in case of receiver a proprietor firm
or any reverse charge
plz resolve
vishal verma
(Querist)
18 August 2017
plz reply expert s
27 July 2024
### GST on Sponsorship and Brand Promotion
**1. **GST Rates and SAC Codes:**
**A. **Sponsorship Services:**
- **SAC Code:** 9983
- **GST Rate:** **18%**. Sponsorship services are classified under the general category of business support services, which are typically taxed at 18% GST.
**B. **Brand Promotion Services:**
- **SAC Code:** 9983
- **GST Rate:** **18%**. Brand promotion services are also generally categorized under business support services and taxed at 18% GST.
**2. **Reverse Charge Mechanism (RCM):**
**A. **Applicability of RCM:**
- **Sponsorship Services:** Under GST, sponsorship services are generally not subject to Reverse Charge Mechanism (RCM). The standard rate of 18% GST applies, and it is the responsibility of the service provider to charge and pay GST.
- **Brand Promotion Services:** Similarly, brand promotion services are usually subject to a standard rate of 18% GST, and are not typically covered under RCM.
**B. **Exceptions:**
- **Specific RCM Scenarios:** RCM could apply in specific cases if the service provider is from a non-resident entity, or if the service is provided by a registered person to a registered person in certain specific cases. However, in the normal course of business, both sponsorship and brand promotion services are not subject to RCM.
### **3. **Invoicing and Reporting:**
**A. **For Service Providers:**
- **Invoicing:** Issue an invoice with 18% GST, mentioning the SAC Code 9983.
- **Reporting:** Report the income and GST in your GST returns (GSTR-1) and pay the GST through GSTR-3B.
**B. **For Service Receivers (Proprietor Firm):**
- **Receiving Services:** You will receive the invoice with 18% GST if you are receiving sponsorship or brand promotion services.
- **Claiming ITC:** You can claim Input Tax Credit (ITC) on the GST paid, provided the services are used for business purposes.
- **Reverse Charge:** Generally, you will not need to apply RCM unless specifically stated under the law or in case of services from non-resident entities.
### **4. **Summary:**
1. **GST Rate on Sponsorship Services:** **18%** with SAC Code **9983**.
2. **GST Rate on Brand Promotion Services:** **18%** with SAC Code **9983**.
3. **RCM:** Generally not applicable for these services. Standard GST rates apply.
4. **ITC:** Available for the GST paid on these services if used for business purposes.
### **References:**
- **GST Rate Notifications:** Notifications detailing GST rates for various services, including business support services.
- **HSN/SAC Codes:** Standard classification codes used for GST purposes.
For any specific scenarios or further details, consulting with a GST professional or tax advisor is recommended.
**1. **GST Rates and SAC Codes:**
**A. **Sponsorship Services:**
- **SAC Code:** 9983
- **GST Rate:** **18%**. Sponsorship services are classified under the general category of business support services, which are typically taxed at 18% GST.
**B. **Brand Promotion Services:**
- **SAC Code:** 9983
- **GST Rate:** **18%**. Brand promotion services are also generally categorized under business support services and taxed at 18% GST.
**2. **Reverse Charge Mechanism (RCM):**
**A. **Applicability of RCM:**
- **Sponsorship Services:** Under GST, sponsorship services are generally not subject to Reverse Charge Mechanism (RCM). The standard rate of 18% GST applies, and it is the responsibility of the service provider to charge and pay GST.
- **Brand Promotion Services:** Similarly, brand promotion services are usually subject to a standard rate of 18% GST, and are not typically covered under RCM.
**B. **Exceptions:**
- **Specific RCM Scenarios:** RCM could apply in specific cases if the service provider is from a non-resident entity, or if the service is provided by a registered person to a registered person in certain specific cases. However, in the normal course of business, both sponsorship and brand promotion services are not subject to RCM.
### **3. **Invoicing and Reporting:**
**A. **For Service Providers:**
- **Invoicing:** Issue an invoice with 18% GST, mentioning the SAC Code 9983.
- **Reporting:** Report the income and GST in your GST returns (GSTR-1) and pay the GST through GSTR-3B.
**B. **For Service Receivers (Proprietor Firm):**
- **Receiving Services:** You will receive the invoice with 18% GST if you are receiving sponsorship or brand promotion services.
- **Claiming ITC:** You can claim Input Tax Credit (ITC) on the GST paid, provided the services are used for business purposes.
- **Reverse Charge:** Generally, you will not need to apply RCM unless specifically stated under the law or in case of services from non-resident entities.
### **4. **Summary:**
1. **GST Rate on Sponsorship Services:** **18%** with SAC Code **9983**.
2. **GST Rate on Brand Promotion Services:** **18%** with SAC Code **9983**.
3. **RCM:** Generally not applicable for these services. Standard GST rates apply.
4. **ITC:** Available for the GST paid on these services if used for business purposes.
### **References:**
- **GST Rate Notifications:** Notifications detailing GST rates for various services, including business support services.
- **HSN/SAC Codes:** Standard classification codes used for GST purposes.
For any specific scenarios or further details, consulting with a GST professional or tax advisor is recommended.
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