Indian Advertising Services to Foreign Clients Classified as Exports, Not Intermediary Services, Under GST Rules.

This circular clarifies the position regarding advertising services provided by Indian advertising companies/agencies to foreign clients. It addresses three key issues: whether the advertising company can be considered an intermediary, whether the foreign client's representative in India or target audience can be considered the recipient, and whether such services qualify as performance-based services under IGST Act. The circular clarifies that the advertising company is not an intermediary but provides services on a principal-to-principal basis. The foreign client, not its Indian representative or target audience, is the recipient. Such advertising services do not qualify as performance-based services u/s 13(3) of IGST Act. Consequently, t..... .....

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