GST liability on payment received from You tube- sharing of advertisement receipt

[PARALIJAYAPALAN ANILKUMAR]

Please clarify the provisons under GST act in the case of receipts from YOU Tube in foreign currency. As per my reading I have advised my client that the same will come under OIDAR services and not liable to pay GST in India. Please Clarify.

[Kiran Tahelani]

Assuming you are talking about content creator who allows you tube to play advertisement in his content and you tube share the ad revenue.

in this regard my view is.

Assuming the services are falling under OIDAR service, the POS would be foreign country as per section 13(2) and therefore all the conditions of exports are fulfilled and therefore in this case your client is providing export of services. He is required to export either with payment of IGST or opt for LUT, in both the cases refund is available

Assuming by any chance the services are not falling under OIDAR services, but still the place of supply would be foreign country section 13(2) of IGST and therefore again all the conditions of exports are fulfilled and your therefore in this case your client is providing export of services. He is required to export either with payment of IGST or opt for LUT, in both the cases refund is available.

[Kiran Tahelani]

Please read section 13(12) instead of section 13(2) in 3rd para (OIDAR)

AI Summary

OIDAR services treatment: YouTube ad receipts are exports with foreign place of supply, eligible for IGST or LUT.
Characterisation of YouTube ad revenue receipts as OIDAR services fixes the place of supply abroad, making the transactions exports of services; the supplier may export either by paying IGST or by furnishing a Letter of Undertaking, and refund is available in both cases. If not OIDAR, the place of supply provision still renders the supply an export, with the same options of IGST payment or LUT and corresponding refund entitlement.