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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 21
st
December, 2017
To,
The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/
Commissioners of Central Tax (All)
The Principal Director Generals/ Director Generals (All)

Madam/Sir,
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 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 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)