Place of Supply of Advertising Services

[ROHIT GOEL]

Dear sir,

Our client is availing services of advertising where their ads are being shown at various Cinema Halls before beginning of broadcast of movie. These cinema halls are based in Chandigarh and Punjab, the client is based in Haryana and the advertiser is registered in Punjab.

The advertiser is issuing GST invoice by charging IGST and Place of supply as Haryana i.e. location of our client.

Whether:

A) Place of supply in this case is correct? Or the Place of supply should be location of cinema hall where Advertisement is broadcast?

B) Whether ITC claim of our client is incorrect ?

Looking forward to hear your views.

AI Summary

Place of supply of advertising services: recipient location governs GST treatment and preserves input tax credit entitlement.
Place of supply for on-site cinema advertising displayed by cinema operators is the location of the service recipient or place of performance, not the immovable property's location, provided the advertisement is not directly related to sale or development of that immovable property; Section 12(14) (government advertisement provision) is distinguishable. An issuer charging IGST with place of supply as the recipient's location aligns with this characterisation, and such a mischaracterisation by the provider would not, on the presented facts, deny the recipient the ability to claim Input Tax Credit.