IGST Rules, 2017
Explanation to section 12(14) of IGST act, 2017
Section states: “The place of supply of advertisement services to the Central Government, a State Government, a statutory body or a local authority meant for the States or Union territories identified in the contract or agreement shall be taken as being in each of such States or Union territories and the value of such supplies specific to each State or Union territory shall be in proportion to the amount attributable to services provided by way of dissemination in the respective States or Union territories as may be determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed.”
Explanation: Source IGST Rules (Amended Notification No. 12/2017–Integrated Tax (Dated 15th November, 2017):
1. Advertisement Through Newspaper: In case advertisement by newspaper & publications, the invoice will be raised to separate state or union territory (UT) according to number of editions, irrespective of registered office of printing press. g. Rama printing press receives order for an advertisement on “beti bachao beti padhao” by Govt. agency for editions of Delhi, Mumbai, Lucknow. In this case three invoices are to be issued for separate state or UT according to No. of editions.
2. advertisement Through Pamphlets: In case advertisement by pamphlets, leaflets, diaries, calendars, T-shirts etc. , the invoice will be raised to separate state or union territory (UT) according to printing orders for separate state or
E.g. Krishna printing press receives order for wow() T-shirts for “Swachh Bharat” campaign by Govt. agency to be distributed in Delhi, Mumbai, Kerela. In this case three invoices are to be issued for separate state or UT according to No. of T-shirts distributed.
3. Advertisement Through :
♣ Hoardings (other than trains) : In case advertisement by hoardings located in each state or UT, the invoice will be raised to separate state or union territory (UT) according to number of hoardings displayed. g. Ganesha printing press receives order for display hoardings on “Saakshar Bharat” by Govt. agency for display in Delhi, Mumbai, Chennai, Kolkata.In this case four invoices are to be issued for separate state or UT according to No. of hoarding displayed.
♣ Hoardings on trains : In case advertisement by hoardings on trains, the invoice will be raised to separate state or union territory (UT) according to ratio of the length of the railway track in each state or UT .
E.g. Jesus printing press receives order for display hoardings on a train with regard to “Janani Suraksha Yojna” by Govt. agency which is to be placed on the Hazrat Nizamuddin Vasco Da Gama Goa Express which runs through Delhi, Haryana, UP, MP, Maharashtra, Karnataka, Goa. In this case Seven invoices are to be issued for separate state or UT according to railway length in each state.
4. Advertisement on back of utility bills: In case advertisement by utility bills of oil & gas or electricity etc, the invoice will be raised to separate state or union territory (UT) according to number of bills issued to each state or UT which is already mentioned on bills.
However , in case of invoice issued for advertisement on back of railway ticket, it is to distributed according to number of railway stations in each state or UT from the website www.indianrail.gov.in. E.g. Nanak printing press receives order for an advertisement on “Atihi devo bhavh” by Govt. agency for printing on electricity bills of consumer in Delhi, Mumbai. In this case two invoices are to be issued for separate state or UT according to No. of bills issued in each state.
5. Advertisement:
♣ Over radio: In case advertisement over radios or at cinema halls, the invoice will be raised to separate state or union territory (UT) according to amount pertaining to each state or UT, irrespective of location of studio. g. Khatu agency receives order for an advertisement on “Mann ki baat” by Govt. agency for broadcast in Delhi, Mumbai, Manipur. In this case three invoice issued based on amount pertaining to each state or UT.
♣ On Television channels: In case advertisement on television channels, the invoice will be raised to separate state or union territory (UT) according to viewership of such channel in a state or UT ( published by broadcast audience research council) OR where viewership related to region comprising of more than one state or UT, invoice must be raised by applying the ratio of populations of that region
E.g. Shiva agency receives order for an advertisement on “Pradhan mantra kaushal vikas yojna” by Govt. agency for telecast in Delhi, Mumbai, Rohtak. In this case three invoices are to be issued for separate state or UT according to No. of population( because more than one region).
Internet nr Rms. In case advertisement over internet or through SMS, the invoice will be raised to separate state or union territory (UT) on the basis of internet subscribers in such state or UT ( notified by TRAI) OR where such service related to region comprising of more than one state or UT, invoice must be raised by applying the ratio of populations of that region.
E.g. Hanuman agency receives order for an advertisement on “Pradhan mantra Bharat jodo yojna” by Govt. agency for telecast in Delhi, Pune, Amritsar. In this case three invoices are to be issued for separate state or UT according to No. of population (because more than one region).
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