GST on DJ and Sound System Rental: SAC 999612 Tax Rates & Vendor Billing Rules (2026)

Under Indian GST law, sound and entertainment services fall under three primary headings:

The table below outlines the statutory tax rates and ITC eligibility across entertainment services:

Indian GST law provides a specific statutory exemption for traditional cultural performances:

• Entry 78 of Notification No. 12/2017-Central Tax (Rate): Services by an artist by way of performance in folk or classical art forms of music, dance, or theater are 100% EXEMPT from GST, provided the consideration charged does not exceed ₹1,50,000 per performance.
• Commercial DJ Exclusion: This exemption strictly excludes modern western DJs, celebrity pop singers, and commercial bands, all of which remain taxable at 18% GST regardless of fee amount.

Playing recorded commercial music at banquet venues requires statutory copyright licenses under the Copyright Act, 1957:

• Phonographic Performance Ltd (PPL): License for playing sound recordings from major record labels.
• Indian Performing Right Society (IPRS): License for author and composer royalties.
• Novex Communications: Covers exclusive sound catalogs for specific Bollywood and international labels.
• GST on Royalty Fees: Licensing fees attract 18% GST under SAC 997331, which venues can claim as Input Tax Credit.

Venura streamlines entertainment vendor management:

• Vendor Purchase Order & Tax Tracking: Generates compliant purchase orders with 18% SAC 999612 tax tracking.
• Event P&L Integration: Links DJ and sound payouts directly to the event P&L ledger to protect net operating margins.
• One-Click Tally Prime Sync: Exports vendor payment vouchers and tax ledgers directly into Tally Prime.

Understanding vendor tax liabilities under GST:

1. 1
   Forward Charge Mandate: DJ performances and sound equipment rentals are standard Forward Charge services. The DJ or sound vendor issues the tax invoice and pays GST to the government.

1. 2
   Unregistered Freelance DJs (Below ₹20 Lakh Threshold): If a freelance DJ has annual aggregate turnover below ₹20 Lakhs (₹10 Lakhs for Special Category States), they are exempt from GST registration. The venue does NOT pay Reverse Charge Mechanism (RCM) on hiring an unregistered DJ for an event under current law (Section 9(4) RCM is not applicable to event services).

1. 3
   TDS under Section 194-C: While GST RCM does not apply, corporate venues hiring DJs on contract must deduct Section 194-C TDS (1% for individual DJs / 2% for companies) if annual payouts exceed ₹30,000 per bill or ₹1,00,000 in aggregate.

Protect your venue against sound curfew fines and equipment damage:

• Sound Curfew Indemnity Clause: All DJ and sound vendor contracts must include an explicit clause stating the vendor is personally liable for any municipal noise fines incurred if they exceed permissible decibel levels or play music past 10:00 PM without authorization.
• Mandatory Surge Protection & Electrical Load Caps: Sound vendors must provide certified power distribution boards with MCB circuit breakers to protect venue electrical panels from overloading.
• Venura Purchase Order Integration: Generates compliant purchase orders with 18% SAC 999612 tax tracking and locked payout milestones.