<p><span>In September 2024, the Ministry of Finance, Government of India, issued Circular No. 230/24/2024-GST. This circular provides clarifications regarding the treatment of advertising services provided by Indian advertising companies to foreign clients, addressing issues related to the place of supply and the applicability of GST.</span></p><p><span><strong>Key Highlights:</strong></span></p><ol start="1"><li><span><strong>Intermediary Clarification:</strong> Indian advertising companies providing comprehensive advertising services to foreign clients are not considered "intermediaries" under Section 2(13) of the IGST Act, as they engage in principal-to-principal supply of services.</span></li><li><span><strong>Recipient Definition:</strong> The foreign client, not the Indian representative or target audience, is considered the recipient of the advertising services as per Section 2(93) of the CGST Act.</span></li><li><span><strong>Place of Supply:</strong> The place of supply for advertising services provided to foreign clients is determined as the location of the foreign client, making it an export of services, provided conditions in Section 2(6) of the IGST Act are met.</span></li><li><span><strong>Performance-Based Services:</strong> Advertising services are not classified as performance-based services under Section 13(3) of the IGST Act, as they do not involve the physical presence of the recipient.</span></li><li><span><strong>Agent Role Exception:</strong> In cases where the advertising company acts merely as an agent facilitating media space procurement, the company is considered an intermediary, and the place of supply is the location of the advertising company.</span></li><li><span><strong>Trade Notices:</strong> Recommendations for issuing trade notices to publicize the circular's contents for consistent application across field formations.</span></li><li><span><strong>Implementation Support:</strong> The Board encourages stakeholders to report any difficulties faced in implementing the circular for further clarification.</span> <a href="https://cms.plasament.com/storage/cir-cgst-230-2024.pdf">cir-cgst-230-2024</a><br> </li></ol>