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.

[Amit Agrawal]

Services by way of performance by Musician (Artist) in the Hotel or Club in a Musical night is covered under forward charge upon the Musician (Artist), in my humble view and in such a case, concerned Hotel or Club are not liable to pay GST under RCM.

RCM liability under Serial No. 9 of Notification No. 13/2017- Central Tax (Rate) (as amended from time to time till date) is for 'Supply of services by a music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 relating to original dramatic, musical or artistic works to a music company, producer or the like.'

These are ex facie views of mine and the same should not be construed as professional advice / suggestion. And I respect contrary views.

[Shilpi Jain]

Agree. Since there is no transfer or permitting use of copyright by musician, there is no RCM liabiltiy. Also, presently there is no liability under RCM for these services even if received from an unregistered person.

The musician would be liable to be paid if his aggregate turnover exceeds 20lakhs in the year/if he is already voluntarily registered under GST.

[Ganeshan Kalyani]

The said service falls under forward charge.

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.