Free ticket is a supply under GST: AAR

The free ticket is a supply under GST: AAR

The Authority of the advance ruling of Punjab has given a ruling in which the AAR has announced that the free ticket is a supply under GST. 

The applicant, Mohali-based KPH Dream Cricket Pvt Ltd, which runs Kings XI Punjab sought for a clarification regarding the tax liability on free-tickets. The tax is binding in Punjab but can influence Other SWIMS as well.

There are two issues raised by the applicant and following the issues:

1. Whether the free tickets given as “Complimentary Tickets” falls within the definition of supply under CGST Act, 2017 and thus whether the applicant is required to pay GST on such free tickets?
2. Whether the applicant is eligible to claim ITC in respect of Complimentary tickets?

Ruling

As the discussion and findings, it would be clear that the activity of the applicant for providing complimentary tickets for free of charge to some person would be considered supply of service as per provisions of both Section 7(1)(a) and 7(1)(d) and would therefore be leviable to tax as per provisions of Section 9 of the CGST Act, 2017 and the parallel Section 9 in the Punjab GST Act, 2017