Govt: Property owners liable for organisers’ compliance with GST

Panaji: State moved to crack down on GST evasion by event organisers and suppliers from other states who provide services at fashion shows, concerts, exhibitions, theatrical performances, beauty pageants and sports events. State tax commissioner Sarpreet Singh Gill issued a directive making venue operators and property owners directly liable for tax dues if they fail to report events organised on their premises to tax authorities.

Under the new directive, all property owners, even if they do not have a GST registration but permit their premises to be used for events, must submit the information to tax officials at least three days before the event.

The order, issued on March 10, covers a range of events, including fashion shows, celebrity events, musical nights, concerts, seminars, exhibitions, trade fairs, award functions, theatrical performances, pageants, sports events, circus shows, melas, and other similar activities involving the supply of goods or services.

Owners are also required to collect and verify the event organiser’s PAN and ascertain whether the organiser holds a valid GSTIN in Goa.

The directive comes in response to a pattern of tax evasion by outside agencies and persons who conduct short-duration events in Goa, often lasting just one to seven days, without obtaining GST registration. Such service providers, vendors and suppliers from other states need to register as casual taxable persons (CTP), which is mandatory under GST law for anyone offering a service or goods where they have no fixed place of business, said Gill.

The state tax commissioner said that the penalty for non-compliant venue owners will lead to imprisonment of up to six months and a fine. If the details are not provided to the department on time, all supplies made by the event organiser from that premises will be deemed to have been made by the property owner themselves.

Further, the entire turnover and tax liability arising from the event concerned will then be held against the venue owner.