The Government of Gujarat on October 11, 2024, issued clarifications in respect of advertising services provided to foreign clients.
The following has been stated: -
•The circular clarifies the place of supply for advertising services provided by Indian agencies to foreign clients.
•It states that if the advertising agency acts on its account, providing a comprehensive service to the foreign client, it is not considered an "intermediary," and the place of supply is determined by the location of the foreign client, qualifying as an export of services.
•However, if the agency merely facilitates the transaction between the foreign client and media owners, it is classified as an intermediary, with the place of supply linked to the agency's location.
The detailed circular is given in the document below.
[Circular No. 230/24/2024-GST]
