The Karnataka Authority for Advance Ruling ( AAR ) has held that the sale of internet advertising space attracts Goods and Services Tax (GST) at 18%. The applicant, Myntra Designs Pvt. Ltd. owns an e-commerce portal and is also engaged in the business of selling fashion and lifestyle products through the said portal. The applicant approached the AAR for clarifying the tax liability of its transaction of providing advertisement space to a foreign customer on its web portal.
Source Taxscan
