OIDAR - Taxability under GST

[Naviin Guptaa]

Dear All,

U/s 13(12) of IGST Act, Place of supply of online information and database access or retrieval services shall be the location of the recipient of services.

My query is whether RCM on advertisement fee charged is required to be paid as per section 13(12) of IGST Act. in case of a person (from India) supplying good to Amazon.com (USA) were they are charging advertisement fee which are mainly used for USA based customer, and remitting payment of sale proceed after deducting their commission, advertisement fee etc.

AI Summary

Debate on GST Taxability of Amazon Ad Fees: Reverse Charge Mechanism and Place of Supply for OIDAR Services. A discussion on the taxability of advertisement fees under the Goods and Services Tax (GST) framework, specifically regarding the reverse charge mechanism (RCM) and the place of supply for online information and database access or retrieval (OIDAR) services. The main query involves an Indian entity selling goods on Amazon.com (USA) and paying advertisement fees, questioning whether these fees fall under OIDAR services and if RCM applies, given the intended audience is in the USA. Participants debate whether the place of supply should be considered as India due to the recipient's location, despite the services targeting a foreign audience.