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

Circular No. 22/22/2017-GST

F. No. 349/58/2017-GST

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

GST Policy Wing

New Delhi, dated 21st December, 2017

To, The Principal Chief Commissioners/Chief Commissioners/

Principal Commissioners/ Commissioners of Central Tax (All)

The Principal Director Generals/ Director Generals (All)


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

Various representations have been received regarding taxation of the supply of art works by artists in different States other than the State in which they are registered as a taxable person. In such cases, if the art work is selected by the buyer, then the supplier issues a tax invoice only at the time of supply. It has been represented that the artists give their work of art to galleries where it is exhibited for supply. There seems to be confusion regarding the treatment of this activity whether it 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. Therefore, in exercise of the powers conferred under section 168 (1) of the Central Goods and Services Tax Act, 2017, for the purpose of uniformity in the implementation of the Act, it has been decided to clarify this matter.

2. It is seen that clause (c) of sub-rule (1) of rule 55 of the Central 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 eway 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 workfrom 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 Board.

8. Hindi version would follow.

(Upender Gupta)

Commissioner (GST)

profile image

About eMinds Legal

eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

8 responses to “Clarification on issues regarding treatment of supply by an artist in various States and supply of goods by artists from galleries”

  1. Brigham says:

    This is my first time pay a quick visit at here and i am actually happy to read all
    at single place.

  2. Leighanne says:

    What a stuff of un-ambiguity and preserveness of precious knowledge regarding unexpected emotions.

  3. Teneka says:

    An intriguing discussion is worth comment. I do think that you ought to write more on this subject, it may not be a taboo matter but typically folks don’t talk about these subjects. To the next! Best wishes!!

  4. Illana says:

    I love looking through a post that can make people think. Also, thanks
    for permitting me to comment!

  5. Afton says:

    What’s up it’s me, I am also visiting this website
    regularly, this web site is genuinely good and the visitors are in fact sharing good thoughts.

  6. Kehaulani says:

    Good day! I simply want to give you a huge thumbs up for your excellent information you have
    right here on this post. I am coming back to your website for more soon.

  7. Ketsia says:

    Aw, this was a very good post. Taking the time and actual effort to make a good article… but what can I say… I put things off a lot and never seem to get nearly anything done.

  8. Pauline says:

    Do you have a spam problem on this website; I also am a blogger, and I was wondering your situation; we have developed some nice practices and we are looking to trade methods with
    other folks, be sure to shoot me an e-mail if interested.

Leave a Reply

Your email address will not be published. Required fields are marked *

Corporate Law Referencer

Corporate Law Referencer

Corporate Law Referencer

India’s Leading Compliance Software

India’s Leading Compliance Software

Get A Demo Today !

Recent Articles

Recent Legal updates

Recent Gst Updates