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.

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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