Del. HC: Administration has Turned Blind Eye Towards Functioning of Dairies in National Capital  ||  Delhi High Court: Ramping Up of Food Sampling & Testing Required in National Capital  ||  Bom. HC: Ensure Availability of Essential Infrastructure to Implement e-Mulakaat System in Prisons  ||  Supreme Court: Concept of 'Parental Alienation Syndrome' Discussed in Child Custody Dispute  ||  Allahabad HC: Person Reposing Faith in Islam Cannot Claim Right in Nature of Live-in-Relationship  ||  Bom. HC: Renaming of Aurangabad and Osmanabad to Chhatrapati Sambhajinagar And Dharashiv Upheld  ||  SC: Time Limit u/s 14(3) of JJ Act to Ascertain Physical & Mental Health of Juvenile is Directory  ||  SC: History Sheets Shouldn’t Contain Name of Innocent Indiv. Solely Because of their Caste or Backg.  ||  Centre to Withdraw Letter Asking States to Not Take Action Against Ayurvedic & Ayush Products Ads  ||  Centre to Withdraw Letter Asking States to Not Take Action Against Ayurvedic & Ayush Products Ads    

GST on Selling of space for advertisement in print media - Clarification regarding- (Press Information Bureau) (23 Aug 2017)

MANU/PIBU/1075/2017

Indirect Taxation

Query has been raised regarding GST applicable on selling of space for advertisement in print media. Selling of space for advertisement in print media is leviable to GST @ 5%.If the advertisement agency works on principal to principal basis, that is, buys space from the newspaper and sells such space for advertisement to clients on its own account, that is, as a principal, it would be liable to pay GST @5% on the full amount charged by advertisement agency from the client.

Illustration: If newspaper sells a unit of space worth Rs. 100/- to advertisement agency for Rs. 85/- [after a trade discount of Rs. 15/-], the advertisement agency sells the same unit of space to client at Rs. 100/-, newspaper would be liable to pay GST @5% on Rs. 85/- [=Rs. 425/-], and the advertisement agency would be liable to pay GST on full value, that is, Rs 100 [=Rs. 5/-] and may utilise ITC of Rs. 4.25/- for payment of the same.

On the other hand, if the advertisement agency sells space for advertisement as an agent of the newspaper on commission basis, it would be liable to pay GST@ 18% on the sale commission it receives from the Newspaper. ITC of GST paid on such sale commission would be available to Newspaper.

Illustration: Advertisement agency sells unit of space to the client not on its own account but on account of newspaper for Rs. 100/- and receives commission of Rs. 15/- for such sale from the Newspaper. In such a case, advertisement agency shall be liable to pay GST @18% on the sales commission of Rs. 15/- [=Rs. 2.7-], ITC of which shall be available to newspaper for payment of GST @ 5% on Rs. 100/- [value of space for advertisement sold by the newspaper]

However, if the advertisement agency supplies any service other than selling of space for advertisement, such as designing or drafting the advertisement, and such supply is not a part of any composite supply, the same would be liable to tax @18%. If such supplies are part of any composite supply, the rate applicable for the principal supply shall apply. Therefore, everything depends on the terms of the contract between the newspaper, advertisement agency and the client.

Tags : GST   SELLING   SPACE   ADVERTISEMENT   PRINT MEDIA  

Share :        

Disclaimer | Copyright 2024 - All Rights Reserved