GST on Selling of space for advertisement in print media – Clarification regarding.
GST
Dated:- 23-8-2017
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.
On the other hand, if the advertisement agency sells space for advertisement as an agent of the newspaper on commission basis, it would
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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. 4.25/-), 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.
Document 2
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
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