Visual art, including paintings, drawings, and sculptures, are classified under HSN Code 9701. These are generally taxed at:
12% GST for original works of art such as:
Original paintings and drawings
Original engravings and lithographs
Original sculptures and statuary
Note: Art sold by an individual artist is exempt from GST if the artist’s turnover is below ₹20 lakh (₹10 lakh in special category states). However, if sold through galleries or dealers, GST becomes applicable regardless of the artist’s turnover.
Exemptions:
Services by performers such as folk or classical artists in music, dance, or theatre are exempt from GST if the amount charged for a performance is up to ₹1.5 lakh per event.
Taxable Services:
If charges exceed ₹1.5 lakh or are provided through an event management company or commercial venue, the services attract 18% GST under general performance services.
Publicly funded institutions, like government-run museums, libraries, and archives, are exempt from GST.
Private museums or cultural experiences that charge entry fees may be subject to 18% GST, depending on the nature of services offered.
Art galleries that act as intermediaries or dealers are treated as suppliers of goods and services. They are subject to:
12% GST on sale of artworks
18% GST on services like curating, event organization, and promotion
The gallery is responsible for collecting and remitting GST on behalf of the artist if it operates as an agent or sells art on consignment.
Art sold through auction houses or in the secondary market also attracts 12% GST, provided it is categorized as original work under HSN 9701. However, input tax credit (ITC) mechanisms and valuation rules can make taxation in secondary markets complex.
Artists and cultural professionals can avail ITC on inputs used to produce taxable goods/services (like materials, transport, or venue rentals), provided they are registered under GST.
When services are procured from an unregistered artist by a registered business entity, the reverse charge mechanism may apply, requiring the buyer to pay GST on behalf of the supplier.
Lack of Awareness: Many independent artists and cultural workers are unaware of registration requirements and exemptions.
Administrative Burden: Small cultural entities often struggle with compliance due to limited resources.
Valuation Issues: Determining the correct taxable value for unique artworks or performances can be subjective and complicated.
GST has brought uniformity to tax structures, but the art and culture sector requires more nuanced policy interventions to preserve creativity while ensuring compliance. With clearer guidelines and awareness, the creative community can better navigate taxation without compromising artistic freedom and cultural preservation.