| Question And Answer | |
|---|---|
| Subject: | GST ON ALLOWANCE RECEIVED |
| Category: | GST |
| Querist: | KARAN SHAH |
| Answered by: | Advocate C.B.Thakar |
| Tags: | allowances, Crickter, GST- Service tax |
| Date: | August 3, 2022 |
BCCI HAS CONTRACT WITH CRICKETOR WHEREIN FOR EVERY FOREIGN TOUR BCCI PAYS FOR EXAMPLE – 100 DOLLAR PER DAY AS ALLOWANCE FOR LOCAL EXPENSE INCURRED BY CRICKETOR IN RESPECTIVE COUNTRY.
FOR 15 DAYS TOUR TO USA – BCCI PAY 1500 DOLLAR AS ALLOWANCE IRRESPECTIVE OF ACTUAL EXPENSE INCURRED. IF ACTUAL EXPENSE IS INCURRED LESS THAN THE ALLOWANCE GIVEN – THEN THE DIFFERENCE AMOUNT IS TRNAFSRRED IN SAVING BANK ACCOUNT OF CRICKETOR IN INDIA IN INR.
WHETHER GST WILL BE APPLICABLE ON SUCH ALLOWANCE
From facts in query it transpires that there is no element of export of services etc. Though the allowance is made for local expenses, it is not falling in category of pure agency as balance money remains with cricketer.
However, such receipt by cricketer will be as player. In other words, it is part of payment to player but in different name. There is exemption to services given by player as per entry 68 in Notification no.12/2017-Central Tax (Rate) dt.28.6.2017. The said entry reads as under:-
“Sl.
No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate Condition
68. Heading 9992 or Heading 9996 Services provided to a recognized sports body by- (a) an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organized by a recognized sports body; (b) another recognized sports body NIL NIL”
In my opinion, the cricketer will not be liable to GST.
I will suggest to examine, the facts in your case vis-à-vis above entry.