Clarification on Tax Treatment of Indian Advertising Agencies Servicing Foreign Clients under GST

• Indian advertising agencies are not considered intermediaries when providing services to foreign clients under GST
• The place of supply for advertising services to foreign clients is based on the location of the client, making them eligible for export benefits
• The foreign client is considered the recipient of the service, not the target audience in India
• Advertising services are not performance-based, and the rules for performance-based services do not apply
• Indian agencies may act as intermediaries if they only help secure media space for foreign clients
• These updates clarify how advertising services for foreign clients are treated under GST, ensuring businesses can continue to benefit from export-related tax benefits.

Source: rmpsco.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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