Sale of on-line area for advertisement to appeal to 18% GST, says AAR






Sale of advertisement house on internet would be liable to 18 for each cent Items and Providers Tax, the Karnataka bench of Authority for Progress Ruling has reported.


E-commerce portal Myntra Styles Pvt Ltd had approached the AAR trying to find a ruling on irrespective of whether offering ad place on its portal to overseas entity Lenzing Singapore Pte Ltd was liable to GST.

The AAR reported Myntra is only leasing the advertisement house to its consumer and the advertiser (Lenzing) is delivering advertisement solutions to its customer.


The support supplied by Myntra to Lenzing is that of rendering ‘sale of online advertising place (apart from on commission)’ and is charging a preset level and not a fee for providing such room.


As a result, the same will be labeled less than ‘other specialist, specialized and business enterprise services’ below GST law and is liable to GST at 18 for each cent.


AMRG & Associates Senior Partner Rajat Mohan claimed, This ruling would make clear on the scope of sale of space on internet and on the applicable taxes on mentioned transaction for the whole market.
(Only the headline and photograph of this report may have been reworked by the Organization Common staff the relaxation of the content is car-generated from a syndicated feed.)

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