Revenue sharing arrangement under gst

[SIVARAMA KUMAR]

Whether Revenue sharing (not profit sharing) is taxable under Gst or it is considered as money transaction or is it a non gst activity.

Please offer your comments.

AI Summary

Revenue Sharing Considered Taxable Under GST, Unlike Service Tax Regime; Impacts on Consultancy Services Discussed A discussion on a forum addressed whether revenue sharing is taxable under GST. Participants generally agreed that revenue sharing is taxable under GST, contrasting it with the service tax regime where it was often exempt. One participant provided an example involving consultancy services, questioning whether the consultant should issue an invoice and what GST rate applies. Responses indicated that revenue sharing is considered a taxable service under GST, and participants referenced various legal precedents and circulars to support this view. The discussion also touched on the expanded scope of GST and input tax credit claims.