Services of Author – Option to pay under Forward Charge

Notification No.22/2019-C.T (Rate) dated 30.09.2019

With respect to the services of transfer or permitting the use or enjoyment of a copyright relating to original literary works supplied by an author to a publisher, the author is given a choice to either pay the GST under forward charge, else the publisher located in India would be liable to pay GST under RCM.

In case the author wishes to pay under forward charge, he should be registered under the CGST Act, 2017 and file a declaration in Annexure I with the jurisdictional CGST or SGST Commissioner by 31st Oct ’19 for exercising the option from 01.11.2019 (for F.Y 2019-20) or before commencement of a financial year for the option to be effective from that financial year. This declaration would be valid up to the end of the financial year 2019-20. Such declaration is to be filed for each financial year.

Also, the author is required to make a declaration in accordance with Annexure II on the invoice issued by him in Form GST INV-I to the publisher.

The declaration in Annexure I shall be filed on or before 31.10.2019 for exercising the option from 1.11.2019 (for FY 2019- 20) or before commencement of a financial year for the option to be effective from that financial year. The option cannot be withdrawn within a period of 1 year from the date of exercise.