TaxTMI 
TaxTMI 
Whether Revenue sharing (not profit sharing) is taxable under Gst or it is considered as money transaction or is it a non gst activity.
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Revenue sharing arrangement under gst
15 Nov 2019 
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Revenue sharing under GST is taxable as supply of services and requires GST invoicing with input tax credit implications.
Revenue sharing where a party provides services in return for a share of the recipient's revenue constitutes consideration for a taxable supply under GST. Such receipts should be invoiced and subjected to GST; historical Service Tax exemptions or principle-to-principle treatments do not control GST treatment. The GST regime broadens the scope of taxable supplies and input tax credit availability, requiring appropriate HSN classification and compliance with invoicing and reporting obligations for service providers receiving revenue shares. (AI Summary)
Revenue sharing where a party provides services in return for a share of the recipient's revenue constitutes consideration for a taxable supply under GST. Such receipts should be invoiced and subjected to GST; historical Service Tax exemptions or principle-to-principle treatments do not control GST treatment. The GST regime broadens the scope of taxable supplies and input tax credit availability, requiring appropriate HSN classification and compliance with invoicing and reporting obligations for service providers receiving revenue shares. (AI Summary)