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’?

[Padmanathan KV]

paying school fee to students by a Private Limited Company will not qualify as "Services provided by way of sponsorship to any body corporate or partnership firm" and hence will not attract GST under RCM.

[Kaustubh Karandikar]

thanks padmanathan ji for your valuable advice

[Ganeshan Kalyani]

Refer entry no.4 of Notification no. 13/2017-CTR dated 28.06.2017

[Shilpi Jain]

This is more like a donation. No liability

AI Summary

GST on sponsorship services: corporate payment of students' school fees treated as donation, not attracting reverse charge under sponsorship head. Payments by a company of private school fees for individual students do not qualify as sponsorship services provided to a corporate or partnership and therefore are not liable to GST under the reverse charge mechanism; such payments are characterised in the discussion as donation-like and outside the notified sponsorship head.