IGST Rules 15-11-2017 | GST Updates PDF Download

 Page 1


 
 
 
 
 
 
 
 
Integrated Goods and Services Tax (IGST) Rules, 
2017 
 
Notified vide Notification No. 4 /2017-Integrated Tax (Dated 28
th
 June 2017) and further as amended by 
Notification No. 12/2017-Integrated Tax (Dated 15
th
 November, 2017) 
 
 
 
 
 
 
 
 
 
(As on 15.11.2017) 
 
 
 
 
 
 
 
Government of India 
Ministry of Finance  
Department of Revenue 
Central Board of Excise and Customs 
Page 2


 
 
 
 
 
 
 
 
Integrated Goods and Services Tax (IGST) Rules, 
2017 
 
Notified vide Notification No. 4 /2017-Integrated Tax (Dated 28
th
 June 2017) and further as amended by 
Notification No. 12/2017-Integrated Tax (Dated 15
th
 November, 2017) 
 
 
 
 
 
 
 
 
 
(As on 15.11.2017) 
 
 
 
 
 
 
 
Government of India 
Ministry of Finance  
Department of Revenue 
Central Board of Excise and Customs 
1 
 
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 
Page 3


 
 
 
 
 
 
 
 
Integrated Goods and Services Tax (IGST) Rules, 
2017 
 
Notified vide Notification No. 4 /2017-Integrated Tax (Dated 28
th
 June 2017) and further as amended by 
Notification No. 12/2017-Integrated Tax (Dated 15
th
 November, 2017) 
 
 
 
 
 
 
 
 
 
(As on 15.11.2017) 
 
 
 
 
 
 
 
Government of India 
Ministry of Finance  
Department of Revenue 
Central Board of Excise and Customs 
1 
 
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 
2 
 
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) 
Page 4


 
 
 
 
 
 
 
 
Integrated Goods and Services Tax (IGST) Rules, 
2017 
 
Notified vide Notification No. 4 /2017-Integrated Tax (Dated 28
th
 June 2017) and further as amended by 
Notification No. 12/2017-Integrated Tax (Dated 15
th
 November, 2017) 
 
 
 
 
 
 
 
 
 
(As on 15.11.2017) 
 
 
 
 
 
 
 
Government of India 
Ministry of Finance  
Department of Revenue 
Central Board of Excise and Customs 
1 
 
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 
2 
 
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) 
3 
 
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: - 
Page 5


 
 
 
 
 
 
 
 
Integrated Goods and Services Tax (IGST) Rules, 
2017 
 
Notified vide Notification No. 4 /2017-Integrated Tax (Dated 28
th
 June 2017) and further as amended by 
Notification No. 12/2017-Integrated Tax (Dated 15
th
 November, 2017) 
 
 
 
 
 
 
 
 
 
(As on 15.11.2017) 
 
 
 
 
 
 
 
Government of India 
Ministry of Finance  
Department of Revenue 
Central Board of Excise and Customs 
1 
 
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 
2 
 
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) 
3 
 
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: - 
4 
 
(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 1
st
 July, 2017 to 30
th
 September, 2017 
shall be used for the succeeding quarter 1
st
 October, 2017 to 31
st
 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;