Categories: Gst Compliance

Selling of space in Advertising Sector under GST

Selling of space in Advertising Sector under GST 

GST Rate in Advertising Sector

GST is applicable to the sale of advertising space in print media as well as other forms of advertising. The unrestricted movement of credits on the procurement side leads in an overall reduction in the value of advertising, while this causes an increase in cash outflow.

  1. GST on advertising through digital media  @ 18%
  2. GST on advertisement in print media The advertisement, in this case, is published in print media like Newspapers. 5% , Whether the activity of selling of space for advertisement in souvenirs is eligible for concessional rate of 5%;

Activity of selling selling of space for advertisement in souvenirs published in the form of books is eligible for concessional GST rate of 5%, it said.

Advertisement Via registered person outside India

According to Sec 5(3) RCM is applicable on notified services & Goods. Same section provision also applies to any supply of service by any person who is located in a non-taxable territory to any person located in a taxable territory, other than the non-taxable online recipient.

ITC credit on selling of space for advertisement

  • Advertising companies spent a lot of money on the high-end electronics and equipment they needed for their businesses, but they were not allowed to claim a credit for such expenditures.
  • They would be able to get a tax credit for the funds they spent on the equipment. Advertising agencies are required to conduct ad shootings in remote areas without a location for their activities.
  • For illustration, a UP-registered advertising agency chooses to film a commercial in Jammu and Kashmir. They would spend significant expenses for the crew’s lodging, for which the hotel would charge CGST plus Jammu GST, and the advertising firm would not be entitled to a refund because they are registered in Uttar Pradesh.

Popular Articles :

Advertising services applicable SAC codes

Group 99836 Advertising services and provision of advertising space or time
998361 Advertising Services
998365 Sale of Internet advertising space
998363 Sale of advertising space in print media (except on commission)
998366 Sale of other advertising space or time (except on commission)
998362 Purchase or sale of advertising space or time, on commission
998364 Sale of TV and radio advertising time
Tags: GST rate
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Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

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