Event management services are taxed at 18% GST under SAC 998596 on the professional service charge — this covers corporate events, wedding planning, exhibitions and concerts. Outdoor catering supplied separately is 5% (no ITC). A wedding or event package sold as one composite supply is taxed at the rate of its principal component (usually 18%). Sponsorship is 18% — under RCM only when the sponsor supplier is not a body corporate.
GST Rate for Event Services — Decision Table
The GST rate and SAC for every common event component, with ITC eligibility for a business client.
| Event Service | GST Rate | SAC | ITC (business) |
|---|---|---|---|
| Event management fee | 18% | 998596 | Yes |
| Wedding / social event planning | 18% | 998596 | No · personal |
| Outdoor catering (food & beverages) | 5% | 9963 | Blocked · 17(5) |
| Catering at specified premises (≥₹7,500) | 18% | 9963 | Blocked · 17(5) |
| Venue / banquet hall rental | 18% | 9972 | Yes |
| Photography / videography | 18% | 9983 | Yes |
| DJ / stage / entertainment | 18% | 9996 | Often blocked |
| Sponsorship of an event | 18% | — | Yes |
| Exhibition / trade-fair stall & space | 18% | 998596 | Yes |
Rates reflect the GST 2.0 two-slab structure effective 22 September 2025 — event management stays at 18%. Confirm the SAC on the official GST portal before invoicing.
GST on a Wedding / Event Package
A wedding planner's package usually bundles planning, decor, venue coordination and catering. How GST applies depends on whether these are billed separately or as a single composite supply.
- Billed component-wise: each element carries its own rate — management/decor/venue at 18%, outdoor catering at 5%.
- One composite package: taxed at the rate of the principal supply. If event management is the main service, the whole package is 18%.
- A caterer whose principal supply is food (buffet-only) charges 5% on the full bill as outdoor catering.
How GST Adds Up — ₹5,00,000 Wedding
18% + 5% Billed separately
18% Single composite package
Selling a wedding as one composite package at 18% can cost more than billing catering separately at 5%. But artificial splitting to dodge tax is a risk area — the split must be genuine, with real separate supplies and correct SAC codes on each line.
Planning weddings or corporate events? Get your invoicing and SAC structure reviewed.
Get Event GST Advice →GST on Event Sponsorship — New RCM Rule
Sponsorship of an event is taxed at 18%. Who deposits that GST changed with Notification 07/2025-CT(R), effective 16 January 2025 — the old "all corporate sponsorship is RCM" position no longer holds.
| Who supplies the sponsorship service | Charge | Who pays GST |
|---|---|---|
| Body corporate (company) sponsor | Forward charge | Supplier charges 18% on its invoice |
| Non-body-corporate (individual / firm) → body corporate or firm | RCM | Recipient self-pays 18% |
| Sponsorship to an unregistered individual recipient | Forward charge | Supplier charges 18% |
RCM now applies only where the supplier is NOT a body corporate and the recipient is a body corporate or partnership firm (Notification 07/2025-CT(R)).
If your company provides sponsorship services (a body corporate), you must now charge 18% GST under forward charge — you can no longer leave it for the recipient under reverse charge. Recipients should stop self-paying RCM on such invoices to avoid double taxation.
Sponsoring or receiving sponsorship for an event? Confirm your forward-charge vs RCM position.
Talk to a GST Expert →GST on Exhibitions & Trade Fairs
Commercial exhibitions, conventions and trade fairs fall under SAC 998596 at 18% across the chain — space and stall rental, exhibition management and participation fees.
- Stall / space rental and participation fee — 18%, ITC available for business exhibitors.
- Exhibition management for a foreign exhibitor can be a zero-rated export of service (with LUT) if the place-of-supply and payment conditions are met.
- Genuinely non-commercial government / educational exhibitions may be exempt under a specific notification — verify the entry.
ITC on Event Costs — What a Business Client Can Claim
Claimable ITC
- Event management fee for a genuine business event
- Venue / banquet hall rental
- Photography, AV and equipment hire
- Exhibition stall & participation fees
Blocked ITC — Section 17(5)
- Food, beverages & outdoor catering at the event
- Staff / customer entertainment where blocked
- Purely personal or family functions
- Club, health & membership components
The catch: even where the event management fee ITC is claimable, the catering portion is blocked under Section 17(5)(b). Keep catering on a separate invoice line so the eligible and blocked credits are clearly identifiable in your ITC records.
For a corporate event, the biggest recoverable GST is usually the management fee and venue — not the catering. Structuring the contract so catering is a distinct 5% supply (not folded into an 18% composite) preserves clarity on which credits you can actually take.
Frequently Asked Questions
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