• Notification Date: 17-02-2022
  • Notification No: N/A

Income from Guest Lectures to be charged with 18% GST

The Karnataka bench of the Authority for Advance Ruling has declared that the income earned from providing guest lecturers will be charged with 18% Goods and Service Tax (GST). An application was filed by Sairam Gopalkrishna Bhat to the Authority for Advance Ruling. The applicant wanted to clarify whether the income earned from providing guest lectures is liable to GST. The new ruling has been passed as a clarification to his query.

According to the opinion of the AAR, the income earned from guest lectures is considered as other professionals, technical and business services. It does not fall under the exempted category of services. Hence, the income that is mentioned by the applicant is liable to 18% of GST charges.

If the income earned by a service professional by providing guest lectures exceeds the limit of Rs.20 lakh, the individual will have to pay goods and service tax (GST) on the income at the rate of 18%.

The new ruling that has passed by the Karnataka bench of the Authority for Advance Ruling is believed to open Pandora’s Box for several freelancers, academicians, researchers, professors, and other professionals. According to the anticipation of AMRG & Associates Senior Partner Rajat Mohan, this ruling will provide a new path of opportunities for those professionals who are involved in sharing knowledge through guest lectures on the payment of consideration.

As Mohan has stated, this new ruling will bring significant changes in the GST payment made by professionals. The individuals who work as part-timers as instructors, trainers, and mentors would need to revalidate their liability to pay the GST.