Applicability of GST on international participants

Rohit (Executive Accountant) (21 Points)

27 July 2021  

 

Facts of the case:

  1.   The Sports Management Private Limited  an Indian company registered in India having its offices & operation centers in Mumbai.

  2. The Sport Management conducts many running / walking events, both ‘on ground’ and on the digital / virtual platform. One such event that we are launching now, In this event iinternational participants are also being encouraged to register & participate in the event.  
  3. For the purpose of registration & receiving payment, a payment gateway link is being made and participants will pay a fee in US$ through the payment gateway, the payment gateway will then release the payment to the sport company as per their regular schedule.
  4. The Companion mobile App will be downloaded by the participants and the participants can then participate from the international location of their choice.
  5. The participants also can opt for event merchandise such as handbooks, medals & Kurta. The same will be couriered to them from India.

Queries related to GST:

  1. Can it be contended that the services are being rendered outside India since the participants in the event are international in nature?
  2. Under the above circumstances, is there a liability to collect GST from International participants?
  3. What is the documentation necessary to be received from the payment gateway evidencing the fact that such remittances came out of the convertible foreign exchange from international participants?
  4.  Will the sport company be able to take credit for the GST and if so what is the procedure?
  5.  Any other query, you may like to clarify.