GST on digital advertising companies

• Goods and Services Tax (GST)
• ||
• June 23, 2017

Assessment of impact on digital advertising companies

Present Scenario

• For services rendered by a digital advertising company, it charges a service tax @15%
• For input services availed by a company, it claims an input tax credit (“ITC”)
• However, a digital advertising company is not eligible to claim ITC on any products used in producing digital content or capital goods purchased by it
• The company file its service tax return on half yearly basis
• Two returns annually which can be revised within a period of 90 days from date of filing

Goods & Service Tax (“GST”)

Registration : Registration is mandatorily required as threshold exemption is not available to E-commerce operators*

Rate under GST :GST will be charged @18% on all invoices

Input Tax Credit : ITC can be availed on any supply of goods or services or both which are used or intended to be used in the course or furtherance of business
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