Page 15 - Ch8_ EXEMPTION

08. Exemptions relating to Entertainment:-

CCP 08.08.14.00
Kesar Maharaj, a renowned classical dancer gave a classical dance performance in an auditorium. The
consideration charged for the said performance is ₹ 98,500. Is Kesar Maharaj liable to pay GST on the
consideration received for the said performance, if such performance is not for promotion of any
product/services? If yes, determine his GST liability.

Will your answer be different if:-
(i) Consideration charged by Kesar Maharaj for the said performance is ₹ 1,60,000?
(ii) Kesar Maharaj is a brand ambassador of a food product and aforesaid performance is for the
promotion of such food product?

(iii)Kesar Maharaj gives a contemporary Bollywood style dance performance in TV Serial?
(iv)Kesar Maharaj gives Coaching in recreational activities relating to arts?
Note:- GST has been charged separately, if any. [CA Inter Exam May 19 New- gets covered in this Q]
Answer:-
Legal Provision:-

a) Performance by an artist in folk or classical art forms of music, dance or theatre is exempt from GST, if
consideration charged for such performance is not more than ₹ 1,50,000. However, exemption will not
apply to service provided by such artist as brand ambassador.

b) Training or coaching service in recreational activities relating to arts or culture by an Individual is exempt
from GST.
Discussion & Conclusion:-
Ø In given case, classical dance performance by Kesar Maharaj is exempt from GST as consideration is ₹
98,500 which does not exceed ₹ 1,50,000 & also, he is not promoting anything. Hence, he is not liable to

pay GST.
Ø Yes, the answers in different scenarios shall be as under:-
(i) If consideration charged by Kesar Maharaj is ₹ 1,60,000, he will be liable to pay GST as although the
performance is in classical art form of dance, but the consideration is more than 1,50,000.

(ii) If Kesar Maharaj is performing as a brand ambassador of a food product to promote the same, then he will
be liable to pay GST as the exemption is not applicable to a brand ambassador.
(iii) If Kesar Maharaj gives a contemporary Bollywood style dance performance in TV Serials, then such
performance will not be eligible for exemption because the performance is not in folk or classical art forms

of dance. Hence, GST would be payable on the same.
(iv) If Kesar Maharaj, being an individual provides coaching in recreational activities relating to arts, then he is
not liable to pay GST as this service is specifically exempted.

CCP 08.08.15.00
XYZ Pvt. Ltd. manufactures beauty soap with the brand name 'Forever beauty'. XYZ Pvt. Ltd. has
organized a concert to promote its brand. Ms. Mahima, its brand ambassador, who is a leading film
actress, has given a classical dance performance in the said concert. The proceeds of the concert is ₹

1,25,000.
(i) Explain with relevant provisions of GST, whether Ms. Mahima will be required to pay any GST.
(ii) What will be the answer if the proceeds of the concert is donated to a charitable organization?

[CA Inter July 21 Exam] [Study Mat (Similar)]

CA VISHAL BHATTAD 09850850800 www.vsmartacademy.com V’Smart Academy 123