GST ON DIGITAL CONTENT AND MOBILE APPLICATIONS

[Sadanand Bulbule]

Whether the principal is required to discharge GST on in-aap purchase transactions, where such transactions are made through an Application Store Operator [ASO] is an agent  acting  on behlaf of the principal, and such operator has already discharged GST @ 18%   on the full value transactioon value?

My understanding is. where the agent discharges tax in respect of such supplies, no additional tax liability arises on the principal in terms of Section 2 [105] of the CGST Act, 2017. Here ASO is an agent within the meaning of the Act, and acts on behalf of the principal to effect supply and discharge GST. 

Here I take the help of the CBIC Circular No. 167/23/2021-GST dated 17/12/2021.

Experts to offer valuable opinions.

[KASTURI SETHI]

Dear Sir Ji,

There is no issue of double taxation. 

[Shilpi Jain]

A transaction can be taxed only once. So once it is taxable in the hands of the agent, the same transaction cannot be taxed again in the hands of the principal.

[Sadanand Bulbule]

Dear experts

Thanks for validation.

AI Summary

Agent discharged 18% GST on full transaction value means no additional liability for principal under Section 2(105) A query was raised regarding GST liability on in-app purchase transactions where an Application Store Operator acts as agent for the principal and has already discharged 18% GST on the full transaction value. The questioner referenced Section 2(105) of CGST Act 2017 and CBIC Circular No. 167/23/2021-GST, arguing that when an agent discharges tax on supplies, no additional liability arises for the principal. Two experts confirmed there is no double taxation issue, stating that once a transaction is taxed in the agent's hands, it cannot be taxed again with the principal.