Gst on facebook advertisment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2017 Do i need to pay GST on Facebook Adverisement under RCM?
We pay to facebook for getting likes and business leads.

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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24 July 2017 Which type of invoice do you receive from facebook on account of such payment.

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2017 Invoice from Face Book Ireland mentioning invoice no and Ireland vat No without any tax.

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CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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24 July 2017 So it is import of service and you are required to pay tax under reverse charge.

Other view which is also possible is that Facebook Ireland is providing OIDAR (Online Information and Database Access or retrieval) Services and hence facebook ireland is required to take mandatory registration under GST.

But to be on safer side since Facebook Ireland is issuing invoice mentioning Ireland VAT so in order to avoid any complications it is advisable to treat it as import of service and pay tax under reverse charge and later on take credit of same..

Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2017 ok.
Thanks Shubhansh