This circular provides clarification on the GST implications relating to supply of artworks by artists, particularly when artworks are moved across States or supplied through art galleries.

It clarifies that when an artist sends artworks to another State or to an art gallery for exhibition or approval, and not for immediate sale, such movement does not constitute a supply at that stage. In such cases, the artworks may be transported on a delivery challan, along with an e-way bill wherever applicable, as permitted under rule 55 of the CGST Rules. The tax invoice is required to be issued only at the time when the artwork is actually supplied, that is, when it is selected by the buyer.

The circular further clarifies that supply of artworks from one State to another qualifies as an inter-State supply and is liable to Integrated GST (IGST) in accordance with the IGST Act.

In cases where artists place their artworks in galleries for display, it is clarified that there is no consideration flowing from the gallery to the artist at the time of sending the artwork for exhibition. Accordingly, this activity does not amount to a supply under GST. The taxable event arises only when the buyer selects and purchases the artwork from the gallery, and GST becomes payable at that time.

These clarifications aim to remove ambiguity and ensure uniform treatment of artworks supplied by artists across States and through galleries under GST law.