GST UPDATE

????Desk of CA. Praveen Sharma Series-585????

The document uploaded appears to be Circular No. 230/24/2024-GST dated 10th September 2024. This circular provides clarifications related to advertising services provided by Indian companies to foreign clients, focusing on issues like intermediary status, determination of the place of supply, and the classification of services as exports.

Key points covered include:

?Non-Intermediary Status : Indian advertising companies providing services to foreign clients are considered to be providing services on their own account, and not as intermediaries. Hence, the place of supply is the location of the foreign client, enabling the services to be classified as exports.

?Recipient Clarification: The foreign client is the recipient of the advertising services, not the Indian representatives or target audiences of the advertisements.

?Performance-Based Services: The services do not fall under the category of performance-based services as defined under Section 13(3) of the IGST Act.

?Export of Services : The place of supply is considered to be outside India when the foreign client is the recipient, making the services eligible for export benefits, provided the conditions of Section 2(6) of the IGST Act are fulfilled.

CA. Sharma Praveen

+91-9871530610