GST on Internet Advt: 18 percent GST will be levied on selling space for advertising on the Internet.

Selling space for advertising on the Internet will attract GST at the rate of 18 per cent. The Karnataka Bench of the Advance Adjudication Authority (AAR) has given this ruling. E-commerce company Mitra Designs Ltd asked AAR as to how much GST would have to be paid on its portal to foreign company Lenzing Singapore Pte Ltd for advertising space.

To this, AAR said that the service that Myntra is providing to Lenzing is the sale of Internet sites. For this, she is charging a fixed rate. Commission is not being charged. Therefore, it comes under the category of other professional, technical and business services under the GST law. It will attract 18% GST only.