RCM APPLICABILITY ON PERFORMANCE BY MUSICIAN IN HOTEL

[Guest]

Respected Experts,

My query is If any Musical night is performed by Musician (Artist) in the Hotel or Club , would there be any liability under Reverse Charge on Hotel or Club or would the musician need to pay under forward charge on his services provided to the Hotel or club.

AI Summary

Musicians in Hotels/Clubs Liable for GST Under Forward Charge, Not RCM, if Turnover Exceeds 20 Lakhs Annually. A query was raised regarding the Goods and Services Tax (GST) liability for musical performances by musicians in hotels or clubs, specifically whether the hotel or club must pay under Reverse Charge Mechanism (RCM) or if the musician pays under forward charge. Experts concluded that such services fall under forward charge, meaning the musician is responsible for GST payment. RCM applies to services involving the transfer of copyright, which is not the case here. If the musician's turnover exceeds 20 lakhs annually or they are voluntarily registered under GST, they are liable for GST.