Import of service with consideration is supply even if not for business purpose.
So if I pay facebook to promote my posts or articles, what are GST implications on this?
pradeep goyal (Senior Partner) (7561 Points)
09 August 2019Import of service with consideration is supply even if not for business purpose.
So if I pay facebook to promote my posts or articles, what are GST implications on this?
CA Haritha Komma
(Chartered Accountant)
(1147 Points)
Replied 10 August 2019
As per sec 24(xi) of the CGST Act, every person providing OIDAR services from outside to an unregistered person in India, has to get himself mandatorily registered under GST and pay taxes..
Hence, facebook may have to take registration in India and pay GST..
pradeep goyal
(Senior Partner)
(7561 Points)
Replied 10 August 2019
CA Haritha Komma
(Chartered Accountant)
(1147 Points)
Replied 10 August 2019
The relevant entry of RCM notificaiton 10/2017-IGST is as follws:
Any service supplied by any person who is located in a non-taxable territory to any person other than nontaxable online recipient.
The term is defined in sec 2(16) of IGST Act which includes unregistered person receiving OIDAR services..
Hence, there is no RCM in the present case and facebook need to pay GST as discussed earlier.
pradeep goyal
(Senior Partner)
(7561 Points)
Replied 10 August 2019
CA Haritha Komma
(Chartered Accountant)
(1147 Points)
Replied 10 August 2019
Exemption is available to such services as per 9/2017-IGST
Services received from a provider of service located in a non- taxable territory by – (a) the Central Government, State Government, Union territory, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any other business or profession;
Hence, they are exempted..
pradeep goyal
(Senior Partner)
(7561 Points)
Replied 10 August 2019
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