TAXABILITY OF EXHIBITION SERVICES UNDER GST

[Chandrashekhar Kandpal]

Dear Experts

I will appreciate your views on the following :

1. Whether SGST or CGST paid in one state can be utilised as set off in other state. e.g. a branch office in Delhi registered under GST and GST from where no supply is taking place. Can we take set off of SGCT/CGST charged for Delhi office against the liability in Maharashtra?

2. If an Exhibition in organised in a state where we do not have branch office :

a. Whether we have to get registered as Casual Taxable person or we will have to take separate registration in that state?

Regards,

Shekhar

[Ganeshan Kalyani]

1) a provision of input service distribution is included in the draft model GST law. Hence you should be able to distribute the credit.

2) a) in my view a separate registration would be required.

However we will have to wait for the final GST Law.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Ganeshan since any change may happen at the time of finalization of the Act and rules.

AI Summary

Input service credit distribution may permit cross state GST set off; separate state registration likely required for exhibitions. The draft model GST law includes an input service distribution mechanism that would permit allocation of input tax credit across units, suggesting cross state credit distribution may be allowed; organising an exhibition in a state without a branch will likely require separate registration in that state, with casual taxable person status as a potential alternative, all subject to the final GST law and rules.