Conference Sponsorship from Outside India

[Ajay Sachdeva]

We are proprietorship firm. We are organizing an international Conference at New Delhi next year ie Feb 2019. We are expecting to receive sponsorship for the same from some overseas companies. Do we need to charge them GST for the same?

AI Summary

Indian Firm Debates GST on International Sponsorships: Reverse Charge Mechanism vs. Direct Charge Under IGST Act Section 13(5) A proprietorship firm in India is organizing an international conference in New Delhi and seeks advice on whether to charge Goods and Services Tax (GST) on sponsorships received from overseas companies. One expert suggests GST is payable under the reverse charge mechanism (RCM), where the service recipient pays the GST. However, another expert argues that the firm, as a service provider, should charge GST directly to the foreign sponsors, citing section 13(5) of the IGST Act. The discussion highlights differing interpretations of GST applicability on sponsorship services and the role of RCM.