GST ON Advertising Agency Service

              For every business either to promote the business or spread just looking after showing an advertisement, become a necessary part of the growth. So, the services related to Advertisement and advertising Agency Service is ever growing trade. After the advent of GST, there so many questions related to Advertising Agency Service related Services, and for every update, clarification from the BOARD will be updated in this page.

Definition and Scope of the Advertising Agency Service :- Any person engaged in providing any service connected with the making, preparation, Display, or exhibition of Advertisement and includes an advertising consultant.

SAC Code (Service Accounting Code) :

1.    Selling of space for advertisement in print media  : 9983

Liability of GST on Advertising Agency Service : As per section 22 to 25, any person who is engaged in supply of goods or rendering of services or both will be liable to be registered under GST if,

1.   Aggregate turnover in a financial year of taxable supply of Goods or Services exceeds Rs. 20 Lakhs or,

2.   Aggregate turnover in a financial year of taxable supply of goods or services exceeds Rs. 10 lakhs if the person is located at North Eastern States of India (including Assam, Meghalaya, Manipur, Mizoram, Nagaland, Arunachal Pradesh, Tripura and Sikkim) and states of Himachal Pradesh, Uttarankhand and Jammu & Kashmir.

Rate of GST rate : As per the rate of GST Notification, rate of GST in respect of Advertising Agency Service is 5% without ITC (Input Tax Credit).

Later Government clarifies the different rate of GST according to the nature of business. So the applicability of GST on selling of space for advertisement in print media is 5% on the full amount charged from the customer by the agency if the agency works on principal to principal basis, i.e, the agency buys space from the newspaper and sells the same to the customer on his own account. But in case of selling space for advertisement as an agent of the newspaper on commission basis, 18% GST would be liable on the commission received from the Newspaper and ITC of the GST paid on sale commission would be available to the Newspaper i.e, Principal party. And also apart from these services, if the agency supplies any other services, such as designing or drafting of advertisement and such supply are not a part of any composite supply, 18% GST would liable. Lastly, Government clarifies that if such supplies are part of the composite supply, the rate of GST applicable for principal supply will apply.

Eligibility of ITC (Input Tax Credit) : No ITC

For SAC Code numbers of other Services CLICK HERE.

To view the GST site, click here https://cbec-gst.gov.in/gst-goods-services-rates.html

For any further query, you can drop a mail to our official mail ID # dnbreply@gmail.com , our associates will reply on time. And we will add your query and our reply with discussion in the below given Q & A.

Questions and Answers related Advertising Agency Service :-

1.   Is there any exemptions in the related services of Advertising Agency Service ?

Ans :- No, all are taxable as of now.