TaxTMI 
TaxTMI 
Place of Supply of Advertising Services
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....lace of Supply of Advertising Services<br> Query (Issue) Started By: - ROHIT GOEL Dated:- 17-6-2022 Last Reply Date:- 22-6-2022 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>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 cl....
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....ient 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 ....
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....to hear your views. Reply By Amit Agrawal: The Reply: It is my presumption that your client is not 'the Central Government, a State Government, a statutory body or a local authority'. It is my understanding that such advertisements are not "broadcasted" per se (i.e. through telecommunication services including data transfer, broadcasting, cable and direct to home television s....
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....ervices). But if I understand correctly, these cinema hall owners / operators display these advertisements on their screen/s using their own internal at-site facilities before start of the movie. Against above background, my views are as under: Answer to Question A: Place of Supply for subject transaction is Haryana Answer to Question B: Your client can avail ITC. All above are strictly perso....
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....nal views of mine and the same should not be construed as professional advice / suggestion. Reply By ROHIT GOEL: The Reply: Dear Amit Ji, Thank you for reply. Just a follow up, whether the transaction of display of advertisements in Movie halls would amount to services in relation to immovable property u/s 12(3) of IGST Act 2017 and may thus make the place of supply as location of the immovabl....
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....e property? Reply By Amit Agrawal: The Reply: I understand it can be an area of concern, dispute and litigation. But, my personal views for shared facts are as follows: A. Providing Advertising services in a Cinema-Hall are NOT directly in relation to an immovable property in my humble view. This is subject to my presumption that the subject ads are NOT directly concerned with any immovable pro....
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....perty of your client For example, If concerned Ads are for selling project/s by a builder-client, then, such ads will be directly in relation to the immovable property/ies. But if these ads for selling a ''goods" manufactured by your client, then, these ads are directly in relation to those "goods". B. If you notice Section 12 (14) of the IGST Act, 2017, it specifically dea....
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....ls with 'advertisement services provided by way of dissemination in the respective States or Union territories as may be'. However, this clause is applicable only when service-recipient is 'the Central Government, a State Government, a statutory body or a local authority meant for the States or Union territories'. C. In my view, Display of these advertisement in a Cinema-Hall is m....
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....ore akin to services linked with 'Place of Performance'. And Section 12 (4) does not cover 'Advertisement Services'. D. Lastly (& most importantly) and assuming that said service-provider is wrong at his end in treating place of supply as 'Haryana' (instead of say 'Punjab'), I do not think that that is a relevant factor to legally deny ITC to your client. All abov....
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....e are strictly personal views of mine and the same should not be construed as professional advice / suggestion. Reply By Shilpi Jain: The Reply: Surely the advertisement services are not in relation to immovable property<br> Discussion Forum - Knowledge Sharing ....