GST on sponsorship services

[Kaustubh Karandikar]

XYZ Ltd. is sponsoring students and paying their school fees to a private school in Mumbai. Is XYZ liable to pay GST under reverse charge on the same under the head ‘Sponsorship Services’?

AI Summary

XYZ Ltd.'s Student Sponsorship Not Liable for GST Under Reverse Charge; Considered Non-Sponsorship Service XYZ Ltd. sponsors students by paying their school fees to a private school in Mumbai. The question raised is whether XYZ is liable to pay GST under reverse charge for these sponsorship services. One response clarified that this action does not qualify as 'services provided by way of sponsorship to any body corporate or partnership firm' and thus does not attract GST under reverse charge mechanism. Another response suggested referring to a specific notification, while a third likened the payment to a donation, indicating no GST liability.