Section 3(h) in The Integrated Goods and Services Tax Rules, 2017
(h)in the case of advertisements over internet, [the service shall be deemed to have been provided all over India and] the amount attributable to the value of advertisement service disseminated in a State or Union territory shall be calculated on the basis of the internet in the following manner, namely:-(i)the internet subscriber figures for a State shall be taken from the figures published in this regard by the Telecom Regulatory Authority of India ;(ii)the figures published for the last quarter of a given financial year shall be used for calculating the number of internet subscribers for the succeeding financial year and at the beginning, the figures for the last quarter of financial year 2016- 2017 shall be used for the succeeding financial year 2017-2018;(iii)where such internet subscriber figures relate to a region comprising of more than one State or Union territory, the subscriber figures for a State or Union territory of that region, shall be calculated by applying the ratio of the populations of that State or Union territory , as determined in the latest census, to such subscriber figures;(iv)the ratio of the subscriber figures for each State or Union territory as so calculated, when applied to the amount payable for this service, shall represent the portion of the value attributable to the dissemination in that State or Union territory.
