Clarification in respect of advertising services provided to foreign clients–reg.

Last updated: 25 September 2024

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This notification provides clarification regarding Goods and Services Tax (GST) for advertising services supplied by Indian companies to foreign clients. It addresses concerns that some field formations were incorrectly treating the place of supply as within India, thus preventing these companies from accessing export benefits. The Central Board of Indirect Taxes and Customs (CBIC) has issued this clarification to ensure consistent application of GST law and resolve difficulties faced by the trade and industry.

F. No. CBIC-20001/6/2024-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
***

New Delhi, dated the 10th September, 2024

To,

The Principal Chief Commissioners/ Chief Commissioners/
Principal Commissioners/ Commissioners of Central Tax (All),
The Principal Directors General/ Directors General (All).

Madam/Sir,
Subject: Clarification in respect of advertising services provided to foreign clients–reg.
References have been received from the trade and industry requesting for clarification regarding advertising services being provided by Indian advertising companies/agencies to foreign entities, as some of the field formations are considering the place of supply of the said services as within India, thereby denying the export benefits to such advertising companies.

1.2 In view of the difficulties being faced by the trade and industry and to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby clarifies the issues in succeeding paragraphs.

FAQ :

The notification clarifies issues concerning advertising services provided by Indian companies to foreign clients.

Clarification was requested by the trade and industry because some tax authorities were considering the place of supply for these services to be within India, denying export benefits to advertising companies.

The clarification has been issued by the Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance, Government of India.

The clarification is issued in exercise of powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (CGST Act).

The main aim is to ensure uniformity in the implementation of GST law across field formations and resolve difficulties faced by businesses providing advertising services to foreign clients.