GST On Advertising Services Agency

Advertising is a popular source of strong communication with the user of product or services. In todays word the advertising agency uses various modes of communication to reach out with the buyer. Such modes of communication are Mails , Hording , posters , sounds , radio etc. The advertising agency converts idea of seller to buyer in means of hording , posters , sound , newspaper , magazine etc.

In India GST on advertisement, advertising agency is imposed. Simply GST on magazine, newspaper, Television , souvenir , hording etc shall be applicable.

The Definition of as per Finance Act  1994

Section 65 (3) “advertising agency” means any person] engaged in providing any service connected with the making, preparation, display or exhibition of advertisement and includes an advertising consultant;

Section 65(2)  “advertisement” includes any notice, circular, label, wrapper, document, hoarding or any other audio or visual representation made by means of light, sound, smoke or gas;

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Rate of GST On Advertising Agency

GST Rate On advertising services and advertising agencies.

Nature of Service	Rate
Selling of Space for Advertisement in Print Media	5%
Other Advertising Services	18%

The supplier of advertising seXYZ Ltd is a adverting agency service provider who buys space form the newspaper and sell same to ABC LTD for Rs. 10000/- per advertisement then GST Rate on such selling of space of advertisement shall be 5 %.Example : –

1. A Ltd is a advertisement agency which sells space of advertisement as agent to B Ltd on commission basis then A Ltd shall charge GST at 18% to newspaper agency.

Print Media

(i) News Paper : – as defined in sub section (1) of section 1 of Press And Registration of Books Act , 1867 (5 of 1867)

(ii) Book : – as defined in sub section (1) of section 1 of Press And Registration of Books Act , 1867 ( 25 of 1867 ) but does not include business directories , yellow pager and trade catalogues which are primarily meant for commercial purpose.

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Input Tax GST credit on Advertising services

The supplier of advertising services are eligible to avail input GST credit. For taking credit GST registration is mandatory.

Such credit availment is subject to conditions mentioned in the Act.

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Composition Scheme

The provisions of composition scheme are not available on advertising services.

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GST Payment due date

Type of Taxpayer	GST Payment Due Dates
General	20th Day of the Next Month
Composition	18th Day of the Next Month of Quarter

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SAC Code for Advertising Services

Group 99836	Advertising services and provision of advertising space or time.
998361	Advertising Services
998362	Purchase or sale of advertising space or time, on commission
998363	Sale of advertising space in print media (except on commission)
998364	Sale of TV and radio advertising time
998365	Sale of Internet advertising space
998366	Sale of other advertising space or time (except on commission)

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