While disposing an application filed by KPH Dream Cricket Pvt Ltd, owners of IPL Team, Kings XI Punjab, the Authority for Advance Rulings (AAR), has ruled that the complimentary tickets provided free of charge would be subject to GST under the Central Goods and Services Tax (GST) Act, 2017 and the same is eligible for Input Tax Credit (ITC).
A bench of Mr. Navdeep Bhinder (State Member) and Mr. G S Bains (Central Member) was the taxability of 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. The assessee, M/s KPH Dream Cricket Private Limited also inquired regarding the eligibility of Input Tax Credit (ITC) in respect of complimentary tickets.
Holding that the free tickets are taxable, the bench observed that “the question of proportional availment of ITC comes into play only when part of the final goods or services are taxable and part of them are exempt. In the present case since all tickets supplied by the applicant including complementary tickets would be taxable, the applicant would clearly be eligible for claim of Input Tax Credit as per the provisions of Section 16 of the CGST Act,2017. However it is clarified that the Input Tax Credit for which the applicant is eligible would be in the context of input and input service as defined in Section 2(59) and 2(60) of the CGST Act,2017 read with Section 16 wherein it is clearly mentioned that credit of input tax charged on any supply of goods or services or both has to be given ‘to him’ which are used in the course of his business. And would therefore not extend to services where the applicant himself is the service provider and leviable to an output tax for such outward supply. Therefore in the present case, the applicant would not be eligible to take credit on the tax leviable on supply of complementary tickets by him, but would be eligible to avail credit of input and input service going into provision of supply of the impugned complementary tickets.”
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