Under the Goods and Services Tax (GST) Act 2017, the applicability of GST to artist performances depends on several factors, including the type of art form, the amount charged for the performance, and the role of the artist. Here’s a breakdown:

Exemption:       

• Folk or Classical Art Forms:Performances in folk or classical forms of music, dance, or theatre are exempt from GST if the consideration charged does not exceed ₹1,50,000. This includes genres like Kathakali, Bharatnatyam, Odissi, Kuchipudi, Carnatic music, Hindustani music, etc.
• Brand Ambassador Exclusion:Note that this exemption doesn’t apply if the artist also acts as a brand ambassador for the event organizer.

Taxable Services:

• Western or Contemporary Art Forms:Performances in Western or contemporary music, dance, or theatre forms are generally taxable under GST Act 2017 at the applicable rate (currently 18%). This includes genres like Rock, Pop, Hip-Hop, Modern dance, Stand-up comedy, etc.
• Film and Television:Performances in films, television series, or web series are also taxable under GST Act 2017.
• Static Art Forms:Activities like painting, sculpture making, or photography are not considered “performances” and their fees are not subject to GST unless they come under service contracts exceeding ₹20 lakhs in a year.

Additional Points:

• Registration Threshold:Artists whose aggregate turnover from taxable art performance services exceeds ₹20 lakhs in a financial year are required to register under GST Act 2017.
• RCM Applicability:In certain cases, the organizer of the event may be responsible for paying GST under reverse charge mechanism (RCM) if the artist is unregistered. This primarily applies to performances in hotels or clubs for musical nights.

EXAMPLE

India’s vast and diverse landscape is reflected in its equally rich and varied artistic traditions. Each state boasts unique art forms, deeply embedded in its history, culture, and geography. Here are a few examples of stunning performances by artists from specific states in India:

• Kerala: Kathakali, a vibrant classical dance form from Kerala, is known for its elaborate makeup, expressive hand gestures, and dynamic storytelling. Performances often depict Hindu epics and mythology, transporting audiences to a world of gods, demons, and heroes.
• Manipur: Manipuri dance, originating from the northeastern state of Manipur, is characterized by its grace, agility, and rhythmic footwork. Dancers adorned in colorful costumes and intricate headdresses weave tales of love, devotion, and nature through their movements.
• Odisha: Odissa, a classical dance form from Odisha, is renowned for its elegance, strength, and intricate footwork. Dancers, often adorned with temple jewelry and vibrant silks, tell stories of Hindu deities and ancient epics through their expressive movements.
• Rajasthan: Ghoomar, a vibrant folk dance from Rajasthan, is a celebration of life and womanhood. Dancers twirl in colorful ghaghras, their skirts billowing like wildflowers, as they sing and clap their hands in joyous abandon.
• Tamil Nadu: Bharatanatyam, a classical dance form from Tamil Nadu, is known for its intricate footwork, expressive hand gestures, and storytelling prowess. Dancers, adorned in silk sarees and temple jewelry, bring Hindu mythology and devotional themes to life through their graceful movements.

These are just a few examples of the countless artistic treasures India has to offer. Each state holds within its borders a unique cultural tapestry, woven with the threads of music, dance, theater, and visual art. Whether you’re a seasoned art enthusiast or a curious newcomer, India’s artistic landscape promises a journey of discovery, wonder, and awe.

FAQ QUESTION

1. Is a performance by an artist considered a “supply of service” under GST Act 2017?

Yes, any performance by an artist, including musicians, singers, dancers, actors, comedians, etc., is considered a “supply of service” under the GST Act 2017.

2. What is the GST rate applicable to artist performances?

The GST rate for artist performances depends on the specific nature of the performance and the location where it takes place. Generally, the following rates apply:

• 18% GST:This is the standard rate applicable to most services, including most artist performances.
• 5% GST:This rate applies to certain specified services, such as performances by folk artists, tribal artists, and performances for educational or charitable purposes.
• 0% GST:This rate applies to certain exempt services, such as performances for the promotion of Indian culture or heritage.

3. Does an artist need to register under GST Act 2017?

The registration threshold for GST in India is currently Rs. 20 lakhs (except for some special categories). If an artist’s annual turnover (gross revenue) from performances exceeds Rs. 20 lakhs, they are required to register under GST Act 2017.

4. What documents are required for an artist to claim Input Tax Credit (ITC)?

Artists can claim ITC on the GST paid on goods and services purchased for their business, such as travel expenses, costumes, equipment, etc. To claim ITC, the artist must obtain a tax invoice from the supplier and have it properly documented in their GST returns.

5. Are there any specific rules for foreign artists performing in India?

Foreign artists performing in India are required to pay GST on their performance fees. They can register under GST Act 2017 temporarily or may appoint a representative to handle their GST compliance.

CASE LAWS

he classification of an artist’s performance under the Goods and Services Tax (GST) Act, 2017, depends on several factors, including the type of art form, the nature of the performance, and the presence of any tangible element accompanying the service.

Here’s a breakdown of relevant case laws and how they impact the GST treatment of artist performances:

Exempt Services:

• Folk or Classical Art Forms:Performances of folk or classical music, dance, theatre, and literature are exempt from GST Act 2017 under Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017. This exemption applies irrespective of the venue or audience size.

Taxable Services:

• Commercial Performances:Performances beyond the realm of folk or classical art forms, such as contemporary music concerts, stand-up comedy shows, or live magic shows, are taxable services under GST Act 2017. The applicable rate depends on the specific nature of the performance and presence of additional elements like stage props, lighting, or sound equipment.
• Performances with Tangible Elements:If a performance involves the sale of any tangible element as part of the package, such as CDs, DVDs, or merchandise, the entire transaction becomes taxable under GST Act 2017. The rate would be based on the dominant element, whether the service (performance) or the supply of goods (CDs, DVDs).

Important Case Laws:

• Union of India vs. Ms. Kavita Krishnamurthy (Supreme Court, 2015):This case upheld the service tax exemption for classical music performances under the pre-GST regime. This judgment continues to be relevant in interpreting the exemption for folk and classical art forms under GST Act 2017. .
• Commissioner of Central Excise, Chandigarh vs. Ms. Manisha Gulati (Punjab & Haryana High Court, 2017):This case ruled that a singer’s performance at a private function was not exempt from service tax despite being classical music. This highlights the importance of the context and purpose of the performance in determining taxability.
• Commissioner of Central Excise, Jaipur vs. Shri Kailash Kher (Rajasthan High Court, 2019):This case clarified that the sale of CDs during a music event would attract GST at the rate applicable to CDs, even though the performance itself might be exempt.

Additional Points:

• Artists are required to register under GST Act 2017 if their annual turnover exceeds the prescribed threshold (currently Rs. 40 lakhs for most states).
• The place of supply for an artist’s performance is generally determined by the location of the audience.
• Artists can claim input tax credit on goods and services used in their performances.