Book a demo
IndiaAuditLens Law Library

Rule 5 of the IGST Rules, 2017

From the IndiaAuditLens Law Library

GST›IGST Rules, 2017

At a glance

Entitlement and conditions

  • 5 openingThe recipient must be other than a registered person, the event must span more than one State or Union territory in India, and the charge must be consolidated.

Procedure, powers and definitions

  • 5Without an agreement separately collecting or determining territorial values, generally accepted accounting principles allocate the service to each territory.
  • 5The law does not settle which generally accepted accounting principles or allocation basis apply to a particular service arrangement.

Rule 5 allocates specified event services supplied to an unregistered person where the event is held in India across States or Union territories for a consolidated charge. If the parties have no agreement separately determining territorial values, generally accepted accounting principles determine the allocation. The rule covers organising events, ancillary services and assignment of sponsorship.[1]

Text

The text below is the rule as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Rules as published in the Gazette of India is the legal source.

Rule 5, verbatim (show)

1[Rule 5. The supply of services attributable to different States or Union territories, under subsection (7) of section 12 of the said Act, in the case of-

(a) services provided by way of organisation of a cultural, artistic, sporting, scientific, educational or entertainment event, including supply of services in relation to a conference, fair exhibition, celebration or similar events; or (b) services ancillary to the organisation of any such events or assigning of sponsorship to such events, where the services are supplied to a person other than a registered person, the event is held in India in more than one State or Union territory and a consolidated amount is charged for supply of such services, shall be taken as being in each of the respective States or Union territories, and in the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of the services in each such State or Union territory, as the case maybe, shall be determined by application of the generally accepted accounting principles. Illustration : An event management company E has to organise some promotional events in States S1 and S2 for a recipient R. 3 events are to be organised in S1 and 2 in S2. They charge a consolidated amount of Rs. 10,00,000 from R. The place of supply of this service is in both the States S1 and S2. Say the proportion arrived at by the application of generally accepted accounting principles is 3:2. The service shall be deemed to have been provided in the ratio 3:2 in S1 and S2 respectively. The value of services provided will thus be apportioned as Rs. 6,00,000/- in S1 and Rs. 4,00,000/- in S2.]

1. Inserted (w.e.f. 01.01.2019) by Notification No. 04/2018 Integrated Tax dated 31.12.2018.

Questions to answer on the file

Questions a reviewer answers from the engagement file, grouped by the part of the rule they come from. They describe what the rule asks; they do not decide it.

Domestic event allocation fallback scope 5(a)–(b)

Questions to answer on the file8 questions
Ticks stay in this browser only.

Proposed GAAP allocation basis 5 concluding words

Questions to answer on the file2 questions
Ticks stay in this browser only.

Arithmetic under the separately established GAAP ratio 5 concluding words

Questions to answer on the file2 questions
Ticks stay in this browser only.

Amendment history

The CBIC text carries 1 footnote. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]

Amendments to Rule 5 as footnoted in the CBIC text
NoteChange
1Inserted (w.e.f. 01.01.2019) by Notification No. 04/2018 Integrated Tax dated 31.12.2018.
Provisions connected to Rule 5
ProvisionConnectionWords that tie them
Section 12 of the IGST Act, 2017this provision refers to Section 12 of the IGST Act, 2017subsection (7) of section 12

Circulars and notifications

Circulars and notifications in the CBIC repository that cite this rule, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.

Notifications (1)

NumberDateSubject
Notification No. 04/2018-Integrated Tax31 December 2018Seeks to amend the IGST Rules, 2017 so as to notify the rules for determination of place of supply in case of inter-State supply under sections 10(2), 12(3), 12(7), 12(11) and 13(7) of the IGST Act, 2017.

Unsettled questions

The words of Rule 5 do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.

  1. Which generally accepted accounting principles and allocation basis apply to the identified multi-State service working under IGST Rule 5 or Rule 7(iii)?

See also

References

  1. Central Board of Indirect Taxes and Customs. "Rule 5. Allocation of multi-State event services". Integrated Goods and Services Tax Rules, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.

External links