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GST on Dance Classes & Workshops

Overview: Dance training services can take various forms, each with distinct GST implications. Let's delve into two primary scenarios.

1. Dance Classes with a Trainer:

·        Scenario 1: When a dance class salaries a dance trainer, no GST is applicable. Such supply falls under the negative list of Schedule III of the CGST Act.

·        Scenario 2: If the trainer receives fees from the dance class, they provide a service to the institute or academy. In this case, GST registration is mandatory if the turnover exceeds the threshold of 20 lakhs (or 10 lakhs in special category states). Once registered, the trainer is liable to pay GST at 18%.

·        Scenario 3: If the trainer directly receives fees from students, they are rendering a service to the students and must obtain GST registration if their turnover exceeds the 20 lakh threshold (10 lakh for special category states). Here too, a GST of 18% is applicable.

2. Dance Workshops and Studios:

In this evolving scenario, dance workshops are becoming increasingly popular. Studios equipped with space and facilities run ads on social media platforms and attract participants.

·        The Studio's Responsibility: If a dance studio generates revenue from such workshops and the turnover reaches the 20 lakh (or 10 lakh) threshold, they must register for GST. They are liable to pay GST at 18% on the receipts.

Tax Planning:

There are opportunities for tax planning in the dance industry, particularly if a dance studio satisfies the conditions for being an ECO (Electronic Commerce Operator). Significant tax savings can be achieved through strategic planning.

Exempt Dance Income:

While dance services are typically taxable, there are exemptions under certain circumstances:

·        Entry 80: Services related to arts, culture, or sports provided by CHARITABLE ENTITIES registered under sections 12AA/12AB of the Income Tax Act are exempt.

·        Entry 78: Services by artists performing folk or classical art forms of Dance, Music, or Theatre are exempt if the consideration does not exceed 1.5 lakhs.

Contact Us:

For expert advice and assistance with GST and tax matters, contact Alliance Tax Experts. We're here to simplify your tax journey!

For expert guidance on GST and tax-related matters, contact Alliance Tax Experts:

·        Phone: 9769201316

·        Email: santoshpatil@alltaxfin.com

·        Visit our website: www.alltaxfin.com

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