Effect of GST on sponsorship

This discussion clarifies the Goods and Services Tax (GST) implications for sponsorship income received by an organisation hosting a conference. It explains that sponsorship is generally subject to the Reverse Charge Mechanism (RCM). This means the sponsoring company, rather than the organisation receiving the sponsorship, is liable to pay the GST. The organisation should issue an invoice to the sponsor without charging GST, as the sponsor will handle the GST payment on a reverse charge basis as per relevant notifications.