GST Applicability & Tax Rates on Music and Entertainment Events

The Goods and Services Tax (GST) regime, introduced in India on July 1, 2017, brought a unified indirect tax system that subsumed various state and central levies. One of the significant sectors impacted by GST is the entertainment industry, especially music concerts, live shows, and other entertainment events. This article explores the applicability of GST, tax rates, registration requirements, exemptions, and compliance obligations related to such events.

Any entity organizing entertainment events is required to register under GST if their aggregate turnover exceeds ₹20 lakh in a financial year (₹10 lakh for special category states). Registration is also mandatory if the entity provides services across state boundaries, regardless of turnover. This means event organizers, promoters, and even performing artists who cross these thresholds need to comply with GST registration rules. This registration allows them to charge GST on their invoices and claim input tax credits on eligible expenses.

GST on tickets for music and entertainment events depends primarily on the ticket price. Tickets priced above ₹500 attract an 18% GST rate, while those priced at ₹500 or below are taxed at 12%. This tiered structure helps ensure affordability for a broader audience. In addition, services related to sponsorship, advertising, and fees paid to performers or artists are generally taxed at 18%. It is important to note that these rates are subject to periodic updates by the GST Council and must be checked regularly.

Certain performances are exempt from GST, including those by folk or indigenous artists or artists performing in religious or charitable events. Similarly, events conducted by registered charitable organizations for non-commercial purposes are usually exempt. In addition, some states or the GST Council provide concessions for events with very low ticket prices, helping promote cultural activities while reducing the tax burden on smaller organizers.

5. GST Rates on Entertainment Events

GST rates vary depending on the nature and pricing of the event. Here’s a breakdown:

Input Tax Credit (ITC)

Organizers can claim Input Tax Credit on:

• Event-related goods and services (lighting, audio equipment, venue rent, etc.)

• Advertising and marketing expenses

• Transportation and logistics

Note: ITC is not available on food and beverages served at the event unless part of an outward taxable composite supply.

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It is crucial for event organizers to maintain proper GST-compliant invoicing, including detailed descriptions of services rendered and the applicable GST rate. Regular filing of GST returns (such as GSTR-1 and GSTR-3B) is mandatory to report supplies and taxes collected. Adequate documentation and timely compliance help avoid penalties and audits, ensuring smooth business operations.

8. Conclusion

Music and entertainment events are squarely within the GST framework, with most revenue streams—ticket sales, sponsorships, artist services—being taxable at 12% or 18%. Event organizers must stay compliant by obtaining registration, charging the correct tax rate, maintaining proper records, and timely filing of returns.

Staying informed of the latest GST updates and exemptions is essential to avoid penalties and ensure smooth operation in the dynamic world of live entertainment.