Clarification on Taxation of Art Supply by Artists
<p><span>The Ministry of Finance, Government of India, issued Circular No. 22/22/2017-GST on December 21, 2017, providing vital clarifications regarding the taxation of art supply by artists across different States. This circular addresses significant concerns about GST implications when artworks are supplied by artists and exhibited in galleries.</span></p><h4>Key Highlights:</h4><ol start="1"><li><span><strong>Inter-State Art Supply</strong>: The circular clarifies that the movement of art from one State to another by artists is an inter-State supply and attracts integrated tax under section 5 of the Integrated Goods and Services Tax Act, 2017.</span></li><li><span><strong>Delivery Challan and E-Way Bill</strong>: Artworks can be transported on a delivery challan along with an e-way bill (if applicable) when moved from the artist’s place of business to another location for exhibition or sale approval.</span></li><li><span><strong>Supply Definition</strong>: When artworks are supplied to galleries, it is not considered a taxable supply in the hands of the artist until an actual sale is made to a buyer. GST is payable only at the time of such actual supply.</span></li><li><span><strong>Implementation Guidance</strong>: The circular recommends that any challenges faced during the implementation of these guidelines should be reported to the Board for resolution.</span></li></ol><p><span>The circular plays a pivotal role in resolving ambiguities related to the taxability of art supply by artists, ensuring a consistent approach across States and fostering the smooth operation of art sales and exhibitions.</span> <a href="https://cms.plasament.com/storage/circularno-22-cgst.pdf">circularno-22-cgst</a><br> </p>