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2020 (10) TMI 1301 - AAR - GSTClassification of services - rate of GST - selling of Space for advertisement in print media - Advertising services and provision of advertising space or time - Advertising Services - Purchase or sale of advertising space or time, on commission - Sale of advertising space in print media (except on commission) - Sale of television and radio advertising time - Sale of internet advertising space - Sale of other advertising space or time (except on commission) - Value of supply in case trade discount/additional discount/agency commission is deducted in the invoices or not - designing/fabrication/production shall formed part of Composite supply or not - HELD THAT:- In case the designing/fabrication/production is bundled with the services mentioned, then the same falls under 'composite supply' in as much as services of 'selling of space for advertisement' constitutes the predominant element and therefore becomes the "principal supply" and the designing/fabrication/production shall form the part of that composite supply as ancillary in as much as 'selling of space for advertisement' cannot be effectively accomplished without designing/fabrication/production. Thus such ancillary activities having a direct and proximal nexus with 'selling of space for advertisement'. Value of supply in case trade discount/additional discount/agency commission is deducted in the invoices raised in the name of the advertising agency by the TV / Radio/ Outdoor Company/ company - HELD THAT:- In view of the legal provisions, the commission shall form the part of taxable value and discount of any kind is excluded from the taxable value subject to the fulfillment of the conditions laid down in the said legal provisions. Hence in-bills discounts and discount established vide agreement before the time of supply subject to the reversal of ITC by the recipient is allowable deduction from the value of the supply. Taxability on value/volume based discounts in form of credit notes after the date of invoice - HELD THAT:- The registered person who had issued a credit note, can adjust his tax liability by following the procedure, subject to the condition that incidence of tax on such supply, has not been passed on to any other person, Thus, it is observed that when a supplier requires to decrease the taxable value of a supply, he has to issue a credit note to the recipient and accordingly can reduce his tax liability for the concerned period provided that he has neither charged or collected tax on such supply. Benefit of Notification No, 12/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time) in respect of the supply made by the advertising agency - HELD THAT:- Technical Officer (TRU) vide letter F.NO. 254/90/2018-TRU dated 03.05.2018 addressed to Joint Commissioner, CCO, Delhi Zone, New Delhi has clarified that the services provided by the DAVP approved agencies on campaign for creating awareness for prevention of diseases to the Health Department is covered under the said notification in as much as 'Public Health' is a function entrusted to local authority under Article 243W read with the Twelfth Schedule S.No. 6 - the advertising agency providing services to the Central Government, State Government, Union territory or Local Authority or a Government Authority in relation to any function entrusted to a panchayat under article 243G of the Constitution or in relation any function entrusted to a Municipality under article 243 W of the Constitute are exempted from payment of GST subject to the fulfilment of the conditions. Supply made by the Radio/TV/outdoor/Internet/Telecom/any other advertiser to the advertising agency - HELD THAT:- The supply is also exempt from GST in terms of Notification No. 12/2017-Central Tax(Rate) dated 28-06-2017(as amended from time to time) - such exemption is also extended to Radio/TV/outdoor/Internet/Telecom/any other advertise, if such specified services has been provided in terms of S.No. 3A under Chapter-99 issued vide notification No. 2/2018 Central Tax (Rate) dated 25.01.2018.
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