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Govt clarifies on GST on newspaper ad space sale

The newspaper would have to pay 5% GST on the revenue earned from space selling

Press Trust of India  |  New Delhi 

Govt clarifies on GST on newspaper ad space sale

Space selling for advertisement in print media will attract 18 per cent if an agency does so as an agent of a on commission basis, the government said on Wednesday.

of 5 per cent will be levied if the works on principal to principal basis -- buys space from the and sells such space for advertisement to clients on its own account, a finance ministry statement said.


As an illustration, if a sells a unit of space worth Rs 100 to an for Rs 85 (after a trade discount of Rs 15) and the agency sells the space to client at Rs 100, the would pay 5 per cent on Rs 85 and the a similar amount of tax on Rs 100.

However, if the sells space for advertisement as an agent of the on commission basis, 18 per cent would be levied on the sale commission it gets.

The would have to pay 5 per cent on the revenue earned from space selling but can avail of input tax credit for the tax paid by the on commission received.

"However, if the supplies any service other than selling of space for advertisement, such as designing or drafting the advertisement, and such supply is not a part of any composite supply, the same would be liable to tax at the rate of 18 per cent," the statement said.

If such supplies are part of any composite supply, the rate applicable for the principal supply shall apply.

"Therefore, everything depends on the terms of the contract between the newspaper, and the client," it added.

First Published: Thu, August 24 2017. 01:25 IST
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