Amendments in Taxation on Intellectual Property Services

The Central Government, pursuant to recommendations by the Council, introduces amendments to the Integrated Goods and Services Tax Act, 2017. Notification No. 10/2017- Integrated Tax (Rate) is modified to include provisions concerning the supply of services related to copyright under the Copyright Act, 1957.

Service providers such as music composers, photographers, and authors are now subject to specific tax treatment when transferring or permitting the use of copyrights to entities like music companies or publishers.

Notable changes include differentiated tax liabilities based on the recipient's type, ensuring clarity and fairness in taxation. Authors opting to pay tax under the forward charge mechanism must submit declarations by specified dates to avail themselves of the option.

The amendments, effective from October 1, 2019, aim to streamline tax procedures for intellectual property transactions.

Issued by Ruchi Bisht, Under Secretary to the Government of India, the amendments underscore the government's commitment to refine GST regulations in line with industry dynamics.