GST on Event Organizing and Input Tax Credit: RAJ/AAR/2019-20/07
The Rajasthan Authority for Advance Ruling confirmed that event organizing services are taxable at 18% and allow for Input Tax Credit claims.
- Ruling
- RAJ/AAR/2019-20/07 dated 17.05.2019
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Event organizing services are classified as a composite supply taxable at 18%.
- Brand promotion packages are also taxable at 18% under the forward charge.
- Organizers can claim Input Tax Credit on hotel, catering, and event management costs.
In short
The All Rajasthan Corrugated Board and Box Manufacturers Association asked the Rajasthan Authority for Advance Ruling (AAR) how to classify their conference and exhibition services for GST purposes. They also wanted to know if they could claim Input Tax Credit (ITC) on the costs of hotels, catering, and event setup. The authority clarified that these services are bundled together and confirmed that the association can claim credit for the taxes paid on these business expenses.
What has changed
How it worked before
Businesses were often uncertain whether event services should be taxed as individual items or as a single package, and whether they could claim credit for the taxes paid to vendors like hotels and caterers.
What has changed
The authority ruled that these services are a 'composite supply,' meaning they are taxed as one package at 18%. It also confirmed that because these expenses are necessary to provide the taxable event services, the organizer is eligible to claim Input Tax Credit on them.
Who this affects
Event management companies, trade associations, and businesses that organize conferences, exhibitions, or large-scale corporate events.
An example
Imagine a software company organizing a three-day industry summit in Jaipur. They hire a hotel for rooms, a caterer for meals, and a decorator for the stage. Based on this ruling, the company can treat the entire summit fee as a single service taxed at 18% and claim Input Tax Credit on the bills from the hotel, caterer, and decorator.
What you should do
If you organize similar events, you may use this ruling to understand how the tax department views bundled services and credit eligibility. However, an Advance Ruling is only binding on the business that asked for it and its specific tax officer. You should consult with your own tax advisor to see if this logic applies to your specific business model.
If you do nothing
If you assume this ruling automatically applies to your business, you risk miscalculating your tax liability or claiming credit you are not entitled to. If a tax officer disagrees with your interpretation, you may face penalties, interest charges, and the demand to pay back the incorrectly claimed credit. Always verify your specific situation with a professional rather than relying on a ruling meant for another entity.
The terms explained
- Composite supply
- A set of services that are naturally bundled together and provided as a single package, where one service is the main part of the deal.
- Input Tax Credit
- The tax a business pays on its own purchases, which it can use to reduce the tax it owes on its own sales.
- Forward charge
- The standard system where the person providing the service collects the GST from the customer and pays it to the government.
The ruling in detail
Authority for Advance Ruling
M/s All Rajasthan Corrugated Board and Box Manufacturers Association
RAJ/AAR/2019-20/07 dated 17.05.2019 · Rajasthan
Questions before the authority
- What shall be the nature of service and classification in accordance with Notification No. 11/2017- CT(R) dated 28.06.17 read with annexure attached to it in relation to services provided by the applicant to the delegates and exhibitors?
- In relation to the brand promotion packages offered by the applicant in the course of the event, what shall be the nature of service and classification, and whether the applicant is liable to pay tax or the liability falls on the recipient under reverse charge?
- Whether Input Tax Credit is admissible for the applicant in respect of tax paid on services provided by the hotel, supply of food and beverages by outside caterers, and services provided by event manager like pickup & drop, exhibition stall setup, tenting, etc.?
Facts
The applicant is an association organizing a conference and exhibition in Jaipur. They offer a bundle of services to delegates, including technical seminars, accommodation, and food, and charge participation fees to exhibitors for trade show space and brand promotion. The applicant sought a ruling on the classification of these supplies and the eligibility of Input Tax Credit on various inward supplies procured for the event.
Ruling
| Question | What the authority ruled |
|---|---|
| Classification of services to delegates and exhibitors | Composite supply classifiable under HSN 998596 Taxable at 18% (9% CGST + 9% SGST) |
| Classification and tax liability for brand promotion packages | Composite supply classifiable under HSN 998397 Taxable at 18% under forward charge; not covered under reverse charge |
| Admissibility of Input Tax Credit | Admissible Allowed for hotel services, outside catering, and event management services used for taxable outward supplies |
The Authority ruled that the services provided to delegates and exhibitors constitute a **composite supply** classifiable under HSN 998596, taxable at 18%. Brand promotion packages are also a composite supply classifiable under HSN 998397, taxable at 18% under the forward charge mechanism. Input Tax Credit is held to be admissible on the specified inward supplies as they are used in the course of business for providing taxable outward supplies.
Reasoning
The Authority applied the definition of composite supply under Section 2(30) of the CGST Act, determining that the services are naturally bundled with a principal supply. For delegates, the principal supply is the organization of the conference, while for exhibitors, it is the organization of the trade show. The Authority relied on Section 8 of the CGST Act to determine the tax liability based on the principal supply. Regarding Input Tax Credit, the Authority concluded that the inward supplies are used in the course of business to provide taxable outward supplies, thus satisfying the eligibility criteria under Section 16 and not being barred by the restrictions in Section 17(5) of the CGST Act.
Provisions relied on
- Section 2(30) of the CGST Act, 2017
- Section 8 of the CGST Act, 2017
- Section 16 of the CGST Act, 2017
- Section 17(5) of the CGST Act, 2017
- Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017
For the practitioner
This ruling provides clarity for event organizers on the classification of bundled services and the eligibility of ITC on event-related expenses. It confirms that such organizers can claim ITC on hotel, catering, and event management services when these are used to provide taxable outward supplies. Practitioners should note that the ruling specifically distinguishes between sponsorship services and branding, confirming that branding services are subject to forward charge.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/raj.aar-2019-20_07-arcbbma.pdf
Legibility of the scan, as read: high.
Prepared 20-10-2026.
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