5% GST applicable on selling of space for advertisement in print media: Centre

The union Govt. has clarified that 5% GST is applicable on selling of space for advertisement in print media if an agency buys space from the newspaper and sells the same to clients on its own account. However, the GST rate will be 18% of the sale commission, if the agency works as an agent of the newspaper on a commission basis. According to the Finance Ministry, 18% GST will be liable if the advertisement agency supplies any service other than the selling of space for advertisement and such supply is not a part of any composite supply. The Ministry said in case, such supplies are part of any composite supply, the rate applicable will be 5%.

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