A welcome Step: Sponsorship services provided by body corporate under forward charge mechanism
A welcome Step: Sponsorship services provided by body corporate under forward charge mechanism 55th GST Council Meeting: It is recommended to bring the supply of sponsorship services by the body corporates under forward charge mechanism. Under GST, sponsorship services provided by any person to a body corporate or partnership firm (including Limited Liability partnership) located in the taxable territory is liable to GST on reverse charge basis2 ('RCM') i.e. body corporate or partnership firm including LLP receiving sponsorship services are liable to pay GST under RCM. The RCM was introduced to simplify tax compliance for smaller or unregistered entities. However, there may be instances where the sponsorship services are supplied by body corporates and the recipient is required to pay tax under RCM. To streamline this process, the GST council has recommended to bring the levy of GST on supply of sponsorship services by a body corporate under the forward charge mechanism (...