GST on Advertising Services

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As we know Advertisement plays an indelible part of business growth and acts as a tool for communicating the products and services offered by the seller to its prospective buyers. Since there are diverse ways in which advertisement services are provided, it becomes important to understand their taxability provisions from the GST perspective. In this article, we will discuss GST on advertising services and also the significance of GST Registration.

Before knowing about the GST on advertising services, now you need to ensure some facts about the GST (Goods and Services tax)

Know About GST?

GST is a complete Indirect Tax that is to levy on sale, manufacture, and consumption of goods and services over the nation. It is a separate tax suitable for the supply of goods from the manufacturer to the consumer. GST is important only on value addition at each stage. Although, GST registration is compulsory for registering business of advertising agencies.

Now, we discuss the procedure of GST on Advertising Services.

Rate of GST on Advertising Agency

GST Rate levied On advertising services and advertising agencies.

  • 5% GST rate on Selling of Space for Advertisement in Print Media
  • 18% GST rate on other advertising agencies. 

SAC Code applicable for Advertising Services

The following SAC (Service Accounting Code) have been established for the various advertising services in India.

  • SAC Code 998361 – Advertising Services
  • SAC Code 998362 – Purchase or sale of advertising space or time, on commission
  • SAC Code 998363 – Sale of advertising space in print media (except on commission)
  • SAC Code 998364 – Sale of TV and radio advertising time
  • SAC Code 998365 – Sale of Internet advertising space
  • SAC Code 998366 – Sale of other advertising space or time (except on commission)

GST on Advertisement to outside India

In terms of Notification No. 10/2017- Integrated Tax (Rate). Any service provided by any person who is located in non-taxable territory to any person other than the non-taxable online recipient is taxable under RCM.

Therefore, if a person in India obtains advertisement services from a person outside India, the recipient of such service will have to pay the GST liability to the Government.

For Example – If Mr X procures advertisement service from M/s. YZM, a firm located in non-taxable territory, and then Mr X would be required to discharge the GST liability to the Government as a recipient of service.

GST on Security Services 

In case, you need any kind of guidance related to the GST registration, GST return filing procedure, or any other GST compliance, please feel free to contact our business advisors at 8881-069-069.

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