Advertising Companies not to be classified as “Intermediaries” between Foreign Clients and Media

The Central Board of Indirect Taxes and Customs (CBIC) clarified that advertising companies should not be categorized as intermediaries under the IGST Act when they provide services between foreign clients and Indian media outlets. The clarification came in response to confusion over whether such companies would fall under the definition of "intermediary services," which attract a different GST treatment. The CBIC’s clarification ensures that these services are treated as exports, making them zero-rated under GST. This ruling is beneficial for advertising firms as it resolves uncertainty regarding their tax obligations.