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Integrated Goods and Services Tax (IGST) Rules, 2017 (As on 15.11.2017)
November, 17th 2017
 Integrated Goods and Services Tax (IGST) Rules,
                      2017
Notified vide Notification No. 4 /2017-Integrated Tax (Dated 28th June 2017) and further as amended by
                  Notification No. 12/2017-Integrated Tax (Dated 15th November, 2017)




                                        (As on 15.11.2017)




                                     Government of India
                                     Ministry of Finance
                                   Department of Revenue
                             Central Board of Excise and Customs
1. Short title and commencement.-(1) These rules may be called the Integrated Goods and
Services Tax Rules, 2017.

(2) They shall be deemed to have come into force on the 22nd day of June, 2017.

2. Application of Central Goods and Services Tax Rules.- The Central Goods and Services
Tax Rules, 2017, for carrying out the provisions specified in section 20 of the Integrated
Goods and Services Tax Act, 2017 shall, so far as may be, apply in relation to integrated tax
as they apply in relation to central tax.

[3. The proportion of value attributable to different States or Union territories, in the case of
supply of advertisement services to the Central Government, a State Government, a statutory
body or a local authority, under sub section (14) of section 12 of the Integrated Goods and
Services Tax Act, 2017, in the absence of any contract between the supplier of service and
recipient of services, shall be determined in the following manner namely:-

       (a) In the case of newspapers and publications, the amount payable for publishing an
       advertisement in all the editions of a newspaper or publication, which are published in
       a State or Union territory, as the case may be, is the value of advertisement service
       attributable to the dissemination in such State or Union territory.

               Illustration: ABC is a government agency which deals with the all the
       advertisement and publicity of the Government. It has various wings dealing with
       various types of publicity. In furtherance thereof, it issues release orders to various
       agencies and entities. These agencies and entities thereafter provide the service and
       then issue invoices to ABC indicating the amount to be paid by them. ABC issues a
       release order to a newspaper for an advertisement on `Beti bachao beti padhao', to
       be published in the newspaper DEF (whose head office is in Delhi) for the editions of
       Delhi, Pune, Mumbai, Lucknow and Jaipur. The release order will have details of the
       newspaper like the periodicity, language, size of the advertisement and the amount to
       be paid to such a newspaper. The place of supply of this service shall be in the Union
       territory of Delhi, and the States of Maharashtra, Uttar Pradesh and Rajasthan. The
       amounts payable to the Pune and Mumbai editions would constitute the proportion of
       value for the state of Maharashtra which is attributable to the dissemination in
       Maharashtra. Likewise the amount payable to the Delhi, Lucknow and Jaipur editions
       would constitute the proportion of value attributable to the dissemination in the
       Union territory of Delhi and States of Uttar Pradesh and Rajasthan respectively. DEF
       should issue separate State wise and Union territory wise invoices based on the
       editions.

       (b) in the case of printed material like pamphlets, leaflets, diaries, calendars, T shirts
       etc, the amount payable for the distribution of a specific number of such material in a
       particular State or Union territory is the value of advertisement service attributable to
       the dissemination in such State or Union territory, as the case may be.

               Illustration: As a part of the campaign `Swachh Bharat', ABC has engaged a
       company GH for printing of one lakh pamphlets( at a total cost of one lakh rupees) to
       be distributed in the states of Haryana, Uttar Pradesh and Rajasthan. In such a case,
       ABC should ascertain the breakup of the pamphlets to be distributed in each of the
       three States i.e. Haryana, Uttar Pradesh and Rajasthan, from the Ministry or

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    department concerned at the time of giving the print order. Let us assume that this
    breakup is twenty thousand, fifty thousand and thirty thousand respectively. This
    breakup should be indicated in the print order. The place of supply of this service is
    in Haryana , Uttar Pradesh and Rajasthan. The ratio of this breakup i.e 2:5:3 will
    form the basis of value attributable to the dissemination in each of the three
    States.Separate invoices will have to be issued State wise by GH to ABC indicating
    the value pertaining to that State i.etwenty thousand rupees- Haryana, fifty thousand
    rupees- Uttar Pradesh and thirty thousand rupees- Rajasthan.

    (c) (i) in the case of hoardings other than those on trains , the amount payable for
    the hoardings located in each State or Union territory, as the case may be, is the value
    of advertisement service attributable to the dissemination in each such State or Union
    territory, as the case may be.

            Illustration: ABC as part of the campaign `Saakshar Bharat' has engaged a
    firm IJ for putting up hoardings near the Airports in the four metros i.e. Delhi,
    Mumbai, Chennai and Kolkata . The release order issued by ABC to IJ will have the
    citywise, locationwise breakup of the amount payable for such hoardings. The place of
    supply of this service is in the Union territory of Delhi and the States of Maharashtra,
    Tamil Nadu and West Bengal. In such a case, the amount actually paid to IJ for the
    hoardings in each of the four metros will constitute the value attributable to the
    dissemination in theUnion territory of Delhi and the States of Maharashtra, Tamil
    Nadu and West Bengal respectively. Separate invoices will have to be issued State
    wise and Union territory wise by IJ to ABC indicating the value pertaining to that
    State or Union territory.

               (ii) in the case of advertisements placed on trains, the breakup, calculated
    on the basis of the ratio of the length of the railway track in each State for that train,
    of the amount payable for such advertisements is the value of advertisement service
    attributable to the dissemination in such State or Union territory, as the case may be.






            Illustration: ABC places an order on KL for advertisements to be placed on a
    train with regard to the "Janani Suraksha Yojana". The length of a track in a state
    will vary from train to train. Thus for advertisements to be placed on the Hazrat
    Nizamuddin Vasco Da Gama Goa Express which runs through Delhi, Haryana, Uttar
    Pradesh, Madhya Pradesh, Maharashtra, Karnataka and Goa, KL may ascertain the
    total length of the track from Hazrat Nizamuddin to Vasco Da Gama as well as the
    length of the track in each of these States and Union territory from the website
    www.indianrail.gov.in. The place of supply of this service is in the Union territory of
    Delhi and States of Haryana, Uttar Pradesh, Madhya Pradesh, Maharashtra,
    Karnataka and Goa. The value of the supply in each of these States and Union
    territory attributable to the dissemination in these States will be in the ratio of the
    length of the track in each of these States and Union territory. If this ratio works out to
    say 0.5:0.5: 2:2 :3:3:1 , and the amount to be paid to KL is one lakh twenty thousand
    rupees, then KL will have to calculate the Statewise and Union territory wise breakup
    of the value of the service, which will be in the ratio of the length of the track in each
    State and Union territory. In the given example the Statewise and Union territory
    wise breakup works out to Delhi (five thousand rupees), Haryana( five thousand
    rupees), Uttar Pradesh (twenty thousand rupees), Madhya Pradesh (twenty thousand
    rupees), Maharashtra (thirty thousand rupees), Karnataka (thirty thousand rupees)

2
    and Goa (ten thousand rupees). Separate invoices will have to be issued State wise
    and Union territory wise by KL to ABC indicating the value pertaining to that State or
    Union territory.

    (d) (i) in the case of advertisements on the back of utility bills of oil and gas
    companies etc, the amount payable for the advertisements on bills pertaining to
    consumers having billing addresses in such States or Union territory as the case may
    be, is the value of advertisement service attributable to dissemination in such State
    or Union territory.

               (ii) in the case of advertisements on railway tickets, the breakup,
    calculated on the basis of the ratio of the number of Railway Stations in each State or
    Union territory, when applied to the amount payable for such advertisements, shall
    constitute the value of advertisement service attributable to the dissemination in such
    State or Union territory, as the case may be.

            Illustration: ABC has issued a release order to MN for display of
    advertisements relating to the "Ujjwala" scheme on the railway tickets that are sold
    from all the Stations in the States of Madhya Pradesh and Chattisgarh. The place of
    supply of this service is in Madhya Pradesh and Chattisgarh. The value of
    advertisement service attributable to these two States will be in the ratio of the
    number of railway stations in each State as ascertained from the Railways or from the
    website www.indianrail.gov.in. . Let us assume that this ratio is 713:251 and the total
    bill is rupees nine thousand six hundred and forty. The breakup of the amount
    between Madhya Pradesh and Chattisgarh in this ratio of 713:251 works out to seven
    thousand one hundred and thirty rupees and two thousand five hundred and ten
    rupees respectively. Separate invoices will have to be issued State wise by MN to ABC
    indicating the value pertaining to that State .

    (e) in the case of advertisements over radio stations the amount payable to such radio
    station, which by virtue of its name is part of a State or Union territory, as the case
    may be, is the value of advertisement service attributable to dissemination in such
    State or Union territory, as the case may be.

           Illustration: For an advertisement on `Pradhan Mantri Ujjwala Yojana', to be
    broadcast on a FM radio station OP, for the radio stations of OP Kolkata, OP
    Bhubaneswar, OP Patna, OP Ranchi and OP Delhi, the release order issued by
    ABC will show the breakup of the amount which is to be paid to each of these radio
    stations. The place of supply of this service is in West Bengal, Odisha, Bihar,
    Jharkhand and Delhi. The place of supply of OP Delhi is in Delhi even though the
    studio may be physically located in another state. Separate invoices will have to be
    issued State wise and Union territory wise by MN to ABC based on the value
    pertaining to each State or Union territory.

    (f) in the case of advertisement on television channels, the amount attributable to the
    value of advertisement service disseminated in a State shall be calculated on the basis
    of the viewership of such channel in such State, which in turn, shall be calculated in
    the following manner, namely: -



3
            (i)     the channel viewership figures for that channel for a State or
    Union territory shall be taken from the figures published in this regard by the
    Broadcast Audience Research Council;
            (ii)    the figures published for the last week of a given quarter shall
    be used for calculating viewership for the succeeding quarter and at the
    beginning, the figures for the quarter 1st July, 2017 to 30th September, 2017
    shall be used for the succeeding quarter 1st October, 2017 to 31st December,
    2017;
            (iii) where such channel viewership figures relate to a region
    comprising of more than one State or Union territory, the viewership figures
    for a State or Union territory of that region, shall be calculated by applying the
    ratio of the populations of that State or Union territory, as determined in the
    latest Census, to such viewership figures;
            (iv)    the ratio of the viewership figures for each State or Union
    territory as so calculated, when applied to the amount payable for that service,
    shall represent the portion of the value attributable to the dissemination in that
    State or Union territory.

            Illustration:ABC issues a release order with QR channel for telecasting
    an advertisement relating to the "Pradhan Mantri Kaushal Vikas Yojana" in
    the month of November, 2017. In the first phase, this will be telecast in the
    Union territory of Delhi, States of Uttar Pradesh, Uttarakhand, Bihar and
    Jharkhand. The place of supply of this service is in Delhi, Uttar Pradesh,
    Uttarakhand, Bihar and Jharkhand. In order to calculate the value of supply
    attributable to Delhi , Uttar Pradesh, Uttarakhand, Bihar and Jharkhand, QR
    has to proceed as under--
    I.QR will ascertain the viewership figures for their channel in the last week of
    September 2017 from the Broadcast Audience Research Council. Let us
    assume it is one lakh for Delhi and two lakhs for the region comprising of
    Uttar Pradesh and Uttarakhand and one lakh for the region comprising of
    Bihar and Jharkhand;
    II. since the Broadcast Audience Research Council clubs Uttar Pradesh and
    Uttarakhand into one region and Bihar and Jharkhand into another region,
    QR will ascertain the population figures for Uttar Pradesh , Uttarakhand ,
    Bihar and Jharkhand from the latest census;
    III. by applying the ratio of the populations of Uttar Pradesh and
    Uttarakhand, as so ascertained, to the Broadcast Audience Research Council
    viewership figures for their channel for this region, the viewership figures for
    Uttar Pradesh and Uttarakhand and consequently the ratio of these viewership
    figures can be calculated. Let us assume that the ratio of the populations of
    Uttar Pradesh and Uttarakhand works out to 9: 1. When this ratio is applied
    to the viewership figures of two lakhs for this region, the viewership figures for
    Uttar Pradesh and Uttarakhand work out to one lakh eighty thousand and
    twenty thousand respectively;
    IV. in a similar manner the breakup of the viewership figures for Bihar and
    Jharkhand can be calculated. Let us assume that the ratio of populations is
    4:1 and when this is applied to the viewership figure of one lakh for this
    region, the viewership figure for Bihar and Jharkhand works out to eighty
    thousand and twenty thousand respectively;


4
           V. the viewership figure for each State works out to Delhi (one lakh), Uttar
           Pradesh (one lakh eighty thousand), Uttarakhand (twenty thousand), Bihar
           (eighty thousand) and Jharkhand (twenty thousand). The ratio is thus
           10:18:2:8:2 or 5:9:1:4:1(simplification).
           VI .this ratio has to be applied when indicating the breakup of the amount
           pertaining to each State. Thus if the total amount payable to QR by ABC is
           twenty lakh rupees, the State wise breakup is five lakh rupees(Delhi), nine
           lakh rupees (Uttar Pradesh) one lakh rupees (Uttarakhand), four lakh rupees
           (Bihar) and one lakh rupees ( Jharkhand). Separate invoices will have to be
           issued State wise and Union territory wise by QR to ABC indicating the value
           pertaining to that Stateor Union territory.

    (g)     in the case of advertisements at cinema halls the amount payable to a cinema
    hall or screens in a multiplex, in a State or Union territory, as the case may be, is
    the value of advertisement service attributable to dissemination in such State or Union
    territory, as the case may be.

           Illustration: ABC commissions ST for an advertisement on `Pradhan Mantri
    Awas Yojana' to be displayed in the cinema halls in Chennai and Hyderabad. The
    place of supply of this service is in the states of Tamil Nadu and Telengana. The
    amount actually paid to the cinema hall or screens in a multiplex, in Tamil Nadu and
    Telangana as the case may be, is the value of advertisement service in Tamil Nadu
    and Telangana respectively. Separate invoices will have to be issued State wise and
    Union territory wise by ST to ABC indicating the value pertaining to that State.

    (h) in the case of advertisements over internet, the amount attributable to the value
    of advertisement service disseminated in a State or Union territory shall be calculated
    on the basis of the internet subscribers in such State or Union territory, which in
    turn, shall be calculated in the following manner, namely:-
                   (i) the internet subscriber figures for a State shall be taken from the
           figures published in this regard by the Telecom Regulatory Authority of India ;
                   (ii) the figures published for the last quarter of a given financial year
           shall be used for calculating the number of internet subscribers for the
           succeeding financial year and at the beginning, the figures for the last quarter
           of financial year 2016- 2017 shall be used for the succeeding financial year
           2017-2018;
                   (iii) where such internet subscriber figures relate to a region
           comprising of more than one State or Union territory, the subscriber figures
           for a State or Union territory of that region, shall be calculated by applying the
           ratio of the populations of that State or Union territory , as determined in the
           latest census, to such subscriber figures;
                   (iv) the ratio of the subscriber figures for each State or Union territory
           as so calculated, when applied to the amount payable for this service, shall
           represent the portion of the value attributable to the dissemination in that State
           or Union territory.
                   Illustration: ABC issues a release order to WX for a campaign over
           internet regarding linking Aadhaar with one's bank account and mobile
           number. WX runs this campaign over certain websites. In order to ascertain
           the statewise breakup of the value of this service which is to be reflected in the
           invoice issued by WX to ABC, WX has to first refer to the Telecom Regulatory

5
          Authority of India figures for quarter ending March, 2017, as indicated on
          their website www.trai.gov.in. These figures show the service area wise
          internet subscribers. There are twenty two service areas. Some relate to
          individual States some to two or more States and some to part of one State and
          another complete State. Some of these areas are metropolitan areas. In order
          to calculate the State wise breakup, first the State wise breakup of the number
          of internet subscribers is arrived at. (In case figures of internet subscribers of
          one or more States are clubbed, the subscribers in each State is to be arrived
          at by applying the ratio of the respective populations of these States as per the
          latest census.). Once the actual number of subscribers for each State has been
          determined, the second step for WX involves calculating the State wise ratio of
          internet subscribers. Let us assume that this works out to 8: 1 : 2... and so on
          for Andhra Pradesh, Arunachal Pradesh, Assam..... and so on. The third step
          for WX will be to apply these ratios to the total amount payable to WX so as to
          arrive at the value attributable to each State. Separate invoices will have to be
          issued State wise and Union territory wise by WX to ABC indicating the value
          pertaining to that State or Union territory.

    (i) in the case of advertisements through short messaging service the amount
    attributable to the value of advertisement service disseminated in a State or Union
    territory shall be calculated on the basis of the telecommunication( herein after
    referred to as telecom) subscribers in such State or Union territory , which in turn,
    shall be calculated in the following manner, namely:-
         (a) the number of telecom subscribers in a telecom circle shall be ascertained
         from the figures published by the Telecom Regulatory Authority of India on its
         website www.trai.gov.in ;
        (b) the figures published for a given quarter, shall be used for calculating
         subscribers for the succeeding quarter and at the beginning , the figures for the
         quarter 1st July, 2017 to 30th September, 2017 shall be used for the succeeding
         quarter 1st October, 2017 to 31st December, 2017;
        (c) where such figures relate to a telecom circle comprising of more than one
         State, or Union territory, the subscriber figures for that State or Union territory
         shall be calculated by applying the ratio of the populations of that State or Union
         territory, as determined in the latest census, to such subscriber figures.
                     Illustration-1: In the case of the telecom circle of Assam, the amount
       attributed to the telecom circle of Assam is the value of advertisement service in
       Assam.
                 Illustration-2: The telecom circle of North East covers the States of
       Arunachal Pradesh, Meghalaya, Mizoram, Nagaland, Manipur and Tripura. The
       ratio of populations of each of these States in the latest census will have to be
       determined and this ratio applied to the total number of subscribers for this
       telecom circle so as to arrive at the State wise figures of telecom subscribers.
       Separate invoices will have to be issued State wise by the service provider to
       ABC indicating the value pertaining to that State.
                 Illustration-3: ABC commissions UV to send short messaging service to
       voters asking them to exercise their franchise in elections to be held in
       Maharashtra and Goa. The place of supply of this service is in Maharashtra and
       Goa. The telecom circle of Maharashtra consists of the area of the State of
       Maharashtra (excluding the areas covered by Mumbai which forms another







6
            circle) and the State of Goa. When calculating the number of subscribers
            pertaining to Maharashtra and Goa, UV has to -
            I. obtain the subscriber figures for Maharashtra circle and Mumbai circle and
            add them to obtain a combined figure of subscribers;
            II. obtain the figures of the population of Maharashtra and Goa from the latest
            census and derive the ratio of these two populations;
            III. this ratio will then have to be applied to the combined figure of subscribers so
            as to arrive at the separate figures of subscribers pertaining to Maharashtra
            and Goa;
            IV the ratio of these subscribers when applied to the amount payable for the short
            messaging service in Maharashtra circle and Mumbai circle, will give breakup of
            the amount pertaining to Maharashtra and Goa. Separate invoices will have to be
            issued State wise by UV to ABC indicating the value pertaining to that State.
                     Illustration-4: The telecom circle of Andhra Pradesh consists of the areas
            of the States of Andhra Pradesh, Telangana and Yanam, an area of the Union
            territory of Puducherry. The subscribers attributable to Telangana and Yanam
            will have to be excluded when calculating the subscribers pertaining to Andhra
            Pradesh.
            (d) the ratio of the subscriber figures for each State or Union territory as so
            calculated, when applied to the amount payable for that service, shall represent
            the portion of the value attributable to the dissemination in that State or Union
            territory.]1




1
 Inserted vide Notf No. 12/2017-Integrated Tax dated 15.11.2017, and deemed to have come into force on
01.07.2017

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