Q. 210 ( 1) Whether RCM is applicable to a recipient TRUST on Sponsorship Services provided by a body corporate or a partnership firm to the Trust ? (2) Whether RCM is applicable to a recipient which is a body corporate or a partnership firm if sponsorship services are provided by the TRUST ?

Ans. As per entry 4 of notification no. 13/2017- CTR, services provided by way of sponsorship to any body corporate or partnership firm by any person shall be liable to GST under reverse charge. In case of sponsorship services provided by a body corporate to a trust, it is covered under forward charge and not under reverse charge. And in case of sponsorship services provided by a trust to a body corporate, it is covered under reverse charge. Since the recipient of sponsorship services is a body corporate, GST on the above services is payable by the recipient under reverse charge.