Clarification on issues regarding treatment of supply by an artist in various States and supply of goods by artists from galleries–Reg.

Circular, 2018

Q: What is the Clarification on issues regarding treatment of supply by an artist in various States and supply of goods by artists from galleries–Reg. made under?

It states that it was made under section 168 of the Delhi Goods and Services Tax Act.

Q: Where can I read the Clarification on issues regarding treatment of supply by an artist in various States and supply of goods by artists from galleries–Reg.?

The English text is set out on this page, reproduced from the document India Code holds for it, and the original PDF is linked from here.

Q: When was the Clarification on issues regarding treatment of supply by an artist in various States and supply of goods by artists from galleries–Reg. made?

It is recorded under the year 2018.

A circular made under the The Delhi Goods and Services Tax Act, 2017.

Kind Circular Year 2018 Jurisdiction Delhi Text 3,784 characters

Made under The Delhi Goods and Services Tax Act, 2017.

Source document (PDF, 507 KB)

Text

Reproduced from the document India Code holds for this instrument. The Gazette prints Hindi and English side by side and this is the English; the Department's own PDF remains the authority.

GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI
DEPARTMENT OF TRADE AND TAXES
Circular no.03/2018-(GST) (Ref: Central Circular NO 22/22/2017-GST) Subject: Clarification on issues regarding treatment of supply by an artist in various States and supply of goods by artists from galleries—Reg.
To clear the confusion reported to the Govt. through various representations regarding the treatment Of the supply of art works by artists, in different States other than the State in which they are registered as a taxable person, and, whether the supply is taxable in the hands of the artist when the same is given to the art gallery or at the time of actual supply by the gallery, if the art work is selected by the buyer, when the supplier issues a tax invoice at the time of supply, it is clarified in exercise of the powers conferred under section 168(1) of the Delhi Goods and Services Tax Act, 2017, for the purpose of uniformity in the implementation Of the Act as under:
2. Clause (c) of sub-rule (1) of rule 55 of the Delhi Goods and Services Tax Rules, 2017 (hereafter referred as “the said Rules”) provides that the supplier shall issue a delivery challan for the initial transportation of goods where such transportation is for reasons other than by way of supply. Further, sub-rule (3) of the said rule provides that the said delivery challan shall be declared as specified in rule 138 of the said Rules. It is also seen that sub- rule (4) of rule 55 of the said Rules provides that where the goods being transported are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal Of goods for the purpose of supply, the supplier shall issue a tax invoice after delivery Of goods.
3. A combined reading of the above provisions indicates that the art work for supply on approval basis can be moved from the place of business Of the registered person (artist) to another place within the same State or to a place outside the State on a delivery challan along with the e-way bill wherever applicable and the invoice may be issued at the time of actual supply of art work.
4. It is also clarified that the supplies of the art work from one State to another State will be inter-State supplies and attract integrated tax in terms of section 5 of the Integrated Goods and Services Tax Act, 2017.
5. It is further clarified that in case of supply by artists through galleries, there is no consideration flowing from the gallery to the artist when the art works are sent to the gallery for exhibition and therefore, the same is not a supply. It is only when the buyer selects a particular art work displayed at the gallery, that the actual supply takes place and applicable GST would be payable at the time of such supply.
6. It is requested that suitable trade notices may be issued to publicize the contents of this circular.
7. Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Policy Branch.
Commissioner (GST) No.F_;[66)/Policy-GST/2017/I3 (41— ‘41 Dated : t 1, He Copy forwarded for information and necessary action to:
1. All Spl./Addl./Joint Commissioners, Department of Trade and Taxes, GNCT of Spl. Commissioner (PR) for wide publicity to the contents of this circular. Joint Director (IT), Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan l.P Estate, New Delhi-02. to upload the circular on the website of the department. The President/General Secretary, Sales Tax Bar Association (Regd.), Vyapar Bhawan LP Estate, New Delhi.
All Assistant Commissioners/GSTOS Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan LP Estate, New Delhi-02 through Zonal Incharges. PS to the Commissioner, GST, Department of Trade and Taxes, GNCT of Delhi, Guard File.
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Provisions this circular answers to

Read out of the instrument itself: an enabling provision is one it says it was made under, which is the power it rests on. The rest it names without resting on.

Other instruments under the same Act

All of the The Delhi Goods and Services Tax Act, 2017

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