This circular clarifies the determination of place of supply and...

This circular clarifies the determination of place of supply and export benefits for advertising services provided by Indian advertising agencies to foreign clients. Key points are: advertising agencies providing comprehensive advertising solutions, including media planning, content creation, and procurement of media space, are not considered intermediaries under IGST Act. The foreign client is the recipient, not their Indian representative or target audience. These services do not qualify as performance-based under IGST Act section 13(3). The place of supply is the location of the foreign recipient u/s 13(2), making it an export of services. However, if the agency merely facilitates media space procurement between the foreign client and media owner, acting as an intermediary, the place of supply is the agency's location u/s 13(8)(b). The circular provides clarity on export benefits eligibility for such advertising services to foreign clients.