GST on Event Management & Sponsorship Services

Event management in India sits at the intersection of several different GST treatments, and that is exactly where businesses slip up. A single corporate conference can involve an event manager charging 18%, a sponsor who is liable to pay tax under reverse charge, an exhibition organiser issuing stall invoices, performers raising their own bills, and a caterer taxed under a completely separate rate. Treating all of this as one undifferentiated "event expense" is how companies end up either under-paying tax or claiming credit they are not entitled to.

This guide breaks down the GST position service by service: event management itself, sponsorship under RCM, exhibitions and trade fairs, artist and performer payments, ITC on corporate events, the relevant SAC codes, and the separate treatment of catering. Throughout, the focus is not just on the rate but on why the law treats each element the way it does, because the reasoning is what tells you how to structure your invoices and contracts correctly.

Looking for expert help with GST on event management and sponsorship services India? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant end-to-end: filings, notices, and advisory, all in one place.

1. GST on Event Management Services (18%, SAC 998596)

Event management is a supply of service. When you organise an event for a client, whether a product launch, a corporate offsite, a wedding, a conference, or a trade show, you are supplying a bundle of services that the GST law classifies as event, exhibition, convention and trade show organisation and assistance services. The applicable Service Accounting Code is 998596, taxed at 18% GST (9% CGST + 9% SGST for intra-state, or 18% IGST for inter-state).

Who qualifies as an event manager?

An event manager is anyone who, for consideration, takes responsibility for planning, coordinating, and executing an event on behalf of a client. The label on your business card does not matter; the nature of the supply does. If you are coordinating the venue, vendors, logistics, decor, and programme as a single managed service, you are supplying event management.

What the service bundle typically includes

When an event manager charges a single consolidated fee for organising the event, this is generally a composite supply with event management as the principal supply, taxed at 18%. If, however, distinct services are billed separately and are not naturally bundled (for example, the event manager separately re-sells catering), each element may need to be examined on its own merits.

2. Sponsorship Services and the Reverse Charge Mechanism

This is the single most misunderstood area in event taxation. Sponsorship is one of the specified services where GST is payable by the recipient under the Reverse Charge Mechanism, not by the supplier.

The legal basis

Under Section 9(3) of the CGST Act, 2017, the government can notify categories of supply where the recipient is liable to pay GST. Sponsorship is one such notified service under Notification No. 13/2017-Central Tax (Rate) dated 28 June 2017. The entry provides that where sponsorship services are supplied to any body corporate or partnership firm located in the taxable territory, the recipient of the service is liable to pay GST under RCM.

How it actually works

The sponsor raises a self-invoice, deposits the GST in cash (RCM liability cannot be set off against ITC at the payment stage), and can then claim that tax back as input tax credit, subject to the usual eligibility conditions.

Why this catches so many companies out

Three reasons. First, the natural assumption is that the supplier always charges and collects GST, so finance teams expect a tax-inclusive invoice from the organiser and never check whether RCM applies. Second, the liability sits with the sponsor, which means a company sponsoring a conference, a cricket match, or an industry award has a GST payment obligation it never invoiced anyone for. Third, the trigger is the legal form of the recipient: the RCM entry applies when the sponsor is a body corporate or partnership firm (which now includes LLPs). If the sponsor is an individual or a sole proprietor, RCM under this entry does not apply and the ordinary forward charge governs.

Missing RCM on sponsorship means the tax was never paid at all, which exposes the company to interest at 18% per annum and penalty, so it is worth reviewing every sponsorship contract before signing. For a fuller treatment of how reverse charge operates across services, see our guide on the Reverse Charge Mechanism (RCM) under GST.

Sponsorship vs advertising vs brand promotion

A practical point: sponsorship is distinct from pure advertising. If a company simply buys advertising space or a branded promotion that is not structured as "sponsorship", the RCM sponsorship entry does not apply and the supplier charges GST under forward charge at 18%. The substance of the arrangement, not just the word used in the contract, decides the treatment.

3. Exhibitions and Trade Fairs

Exhibition and trade fair organising is taxable at 18%, classified within the same family of event organisation services (SAC 998596). The organiser charges 18% on stall rentals, participation fees, and ancillary services provided to exhibitors.

ITC for exhibitors

An exhibitor (a business that books a stall to display or sell its products) is incurring the cost for business promotion. Because exhibition participation is in the course or furtherance of business and is not listed among the blocked credits in Section 17(5), the exhibitor can normally claim full ITC on the GST charged by the organiser. This is a meaningful difference from many other event costs, where credit is blocked.

Place of supply for stalls

The place of supply question matters because it decides whether the organiser charges CGST+SGST or IGST. There are two situations to keep distinct:

• A simple right to use a stall (immovable property): where the supply is essentially a service "in relation to immovable property" (the exhibition venue), the place of supply can be the location of the immovable property under the place-of-supply rules for such services.
• Admission to, or organising of, an event: services by way of admission to an event, or services ancillary to such admission, are governed by the place-of-supply rule that ties to where the event is actually held. For organising an event for a registered person, the general rule (location of the recipient) can instead apply.

The practical effect is that exhibition supplies are often taxed with reference to the venue location, so an out-of-state exhibitor may receive a CGST+SGST invoice of the venue state and should confirm the credit chain works before assuming seamless ITC. Getting the place of supply wrong is a common reason ITC is later denied.

4. Artist and Performer Payments

Events frequently involve performers: musicians, dancers, anchors, celebrity speakers, DJs, and similar artists. Their GST treatment depends on registration status and the nature of the performance.

• A performer who is registered under GST charges 18% on their performance fee under forward charge (performing artist services fall in the cultural and entertainment services family).
• A performer who is unregistered (turnover below the threshold) does not charge GST. There is no general RCM entry that shifts performer fees onto the event company, so an unregistered artist's fee simply carries no GST.
• A narrow exemption historically exists for certain performances by an artist in folk or classical art forms (music, dance, theatre) up to a specified consideration limit per performance, provided it is not as a brand ambassador. This exemption is narrow and does not cover commercial pop or celebrity acts.

Interaction with TDS

GST and TDS are two separate obligations on the same payment, and both can apply at once. When a company pays an artist or performer, TDS under the Income Tax Act (for example under the provisions covering professional or technical fees, or fees to non-resident artists) is deducted on the fee, while GST is charged on top by a registered performer. TDS is computed on the value of the service; the standard practice is to deduct income-tax TDS on the fee component and account for GST separately. Do not net one against the other. Where the GST law's own TDS provisions (Section 51) apply (relevant mainly to government and notified deductors), that is a further, distinct deduction from the GST TDS angle and should not be confused with income-tax TDS.

5. Corporate Events Organised by HR or Marketing (Can You Claim ITC?)

This is where in-house teams lose the most credit. A company's HR or marketing function organises a town hall, an annual day, a sales conference, or a customer event and assumes the GST paid is fully creditable. Often it is not.

The Section 17(5) problem

Section 17(5) of the CGST Act blocks input tax credit on certain inward supplies even when used for business. The ones most relevant to corporate events are:

So when your event invoice bundles in catering, food, and beverages, the credit on that portion is generally blocked.

The carve-outs that restore credit

Section 17(5) contains an important proviso. ITC on these items is allowed where:

1. The inward supply is used to make an outward taxable supply of the same category (for example, an event company that itself supplies outdoor catering can claim credit on catering it buys in), or
2. Providing the supply is obligatory for an employer under any law in force.

For an ordinary company hosting its own staff event, neither carve-out usually applies, so the catering and food portion of the event remains a blocked credit. The portion that is pure event management, stage, AV, and venue (not food and beverage) can typically be claimed, provided it is for business and properly invoiced. The practical lesson is to split the invoice: separate the event management and infrastructure charges (creditable) from the food and beverage charges (blocked), so you do not lose credit on the whole bill or wrongly claim credit on the blocked part.

6. SAC Codes for Cultural, Sports, and Organising Services

Using the correct SAC on the invoice matters for classification and for defending the rate if questioned. The key codes in the event ecosystem are:

Most event-related services land at 18%, so the rate is rarely the issue. The classification matters more for matching the SAC to the actual service and for correctly applying any exemption (such as the narrow performing-artist exemption) or RCM entry (such as sponsorship).

7. Catering at Events (Taxed Separately from Event Management)

Catering is not event management, and conflating the two is a frequent error. Catering has its own rate structure, and it is generally less favourable on credit.

The general position is that standalone outdoor catering and restaurant-type services are taxed at 5% without input tax credit to the caterer. Where catering is supplied within "specified premises" (broadly, hotels with declared tariffs at or above the notified threshold), the rate can be 18% with ITC. For the company hosting the event, even where the caterer charges 18%, the recipient's credit is still tested against Section 17(5), which blocks ITC on food, beverages, and outdoor catering for the ordinary customer.

Because of this, catering should normally be invoiced by the caterer under its own GST treatment, not absorbed into the event manager's 18% bill without analysis. If an event manager buys catering and re-supplies it as part of a single composite event package, the bundling rules and the principal supply determine the outcome, but the safer and more common practice is separate, correctly-rated invoices.

For an overview of which returns capture all of these supplies and credits, see our guide to the Types of GST returns in India.

Practical Compliance Checklist for Event Businesses

1. Confirm RCM before signing sponsorship deals. If your company is a body corporate or partnership firm sponsoring an event, you owe GST under RCM. Budget for it and raise a self-invoice.
2. Split event invoices into creditable (event management, AV, venue) and blocked (food, beverage, catering) lines so ITC is claimed correctly.
3. Check the place of supply for exhibition stalls and cross-state events to apply CGST+SGST or IGST correctly and protect the credit chain.
4. Separate TDS and GST on artist payments; deduct income-tax TDS on the fee and account for GST on top where the artist is registered.
5. Match the SAC to the actual service supplied, especially where exemptions or RCM entries hinge on classification.

Quick Reference: GST Treatment at a Glance

Frequently Asked Questions

What is the GST rate on event management services in India?

Event management services are taxed at 18% GST under SAC 998596 (event, exhibition, convention and trade show organising services). This is 9% CGST plus 9% SGST for intra-state supplies, or 18% IGST for inter-state supplies. The 28% slab was abolished from 22 September 2025, and event management continues at 18%.

Who pays GST on sponsorship, the sponsor or the organiser?

When sponsorship is provided to a body corporate or a partnership firm (including LLPs), the recipient, that is the sponsor, pays GST under the Reverse Charge Mechanism. This is set out in Section 9(3) of the CGST Act read with Notification No. 13/2017-Central Tax (Rate). The organiser does not charge GST on the sponsorship invoice. If the sponsor is an individual or sole proprietor, RCM under this entry does not apply.

Can an exhibitor claim input tax credit on exhibition stall charges?

Yes, in most cases. Exhibition participation is a business promotion expense and is not listed among the blocked credits in Section 17(5), so the exhibitor can normally claim full ITC on the 18% GST charged by the organiser. Confirm the place of supply and the correct tax type (CGST+SGST or IGST) on the invoice, as a mismatch can cause the credit to be denied.

Is ITC available on corporate event expenses incurred by a company?

Partly. ITC on the event management, audio-visual, stage, and venue portion is generally available because it is for business. However, ITC on food, beverages, and outdoor catering is blocked under Section 17(5) unless a narrow carve-out applies (for example, where it is obligatory under law or where you make an outward supply of the same category). Split the invoice so credit is claimed only on the eligible portion.

How is an artist or performer payment taxed under GST?

A registered performer charges 18% GST on their fee under forward charge. An unregistered performer charges no GST, and there is no general RCM entry shifting the liability to the event company. A narrow exemption can apply to certain folk or classical art performances up to a specified value, but it does not cover commercial or celebrity acts. Income-tax TDS on the fee is a separate obligation and is accounted for independently of GST.

What SAC code is used for event and exhibition organising services?

The principal code is SAC 998596, covering event, exhibition, convention and trade show organising and assistance services, taxed at 18%. Performing-arts promotion, artist services, and sports event organisation fall in related SAC families (the 99963 and 99654/99655 groups), also generally at 18%.

Is catering at an event taxed the same as event management?

No. Catering has its own rate structure. Standalone restaurant and outdoor catering services are generally taxed at 5% without input tax credit to the caterer. Catering within specified premises (broadly, hotels with declared tariffs at or above the notified threshold) can attract 18% with ITC. Event management itself stays at 18% under SAC 998596, so catering should be invoiced and rated separately rather than absorbed into the event management bill without analysis.

What happens if a company misses paying GST under RCM on sponsorship?

Because RCM sponsorship tax is never charged on the supplier's invoice, missing it means the tax was not paid at all. The company remains liable for the GST, plus interest at 18% per annum from the due date, and potential penalty. Reviewing each sponsorship contract before signing and raising the required self-invoice helps reduce exposure to penalties and interest.

---

Sources and verification: This guide is based on the Central Goods and Services Tax Act, 2017, specifically Section 9(3) (reverse charge on notified supplies), Section 17(5) (blocked input tax credit, including food and beverages and outdoor catering), and Section 51 (TDS under GST). The reverse charge on sponsorship is governed by Notification No. 13/2017-Central Tax (Rate) dated 28 June 2017 (sponsorship to any body corporate or partnership firm). Rate and classification references rely on the GST rate notifications for services (Notification No. 11/2017-Central Tax (Rate) and amendments) and the Service Accounting Code (SAC) scheme under the Scheme of Classification of Services. The abolition of the 28% slab and the move to 0/5/18/40% slabs is effective 22 September 2025. Place-of-supply positions follow Section 12 of the IGST Act, 2017. Exact rates, thresholds for specified premises, and exemption limits should be verified against the latest CBIC notifications and www.gst.gov.in before applying them to a specific transaction.