GST on advertising media is applicable on all modes that include even the sale of space in print media. These opportunities lead to an increase in cash flow on the procurement side. There are two parties involved in advertising media that are the advertiser and the publisher. An advertiser is a person who wants to advertise the products or ideas or website or mobile apps. And a publisher is a person who publishes the given advertisements. 

The said advertisements are published on various different platforms in different digital mediums such as SMS, Websites or e-mails. GST on advertising media is charged at a rate of 18%. The GST rate also depends on the composition scheme, if a person is eligible to pay GST at the composition scheme rate then the rate of GST for the taxpayer will be less.

GST on Advertising Media Through Advertising Agencies

Advertisers opt for various different mediums for the purpose of advertising. The advertising agency is an option followed by many individuals. Two possibilities occur in this type of environment. The first one is an advertisement in principal's capacity, here the advertiser himself approaches the advertising companies/agencies for advertising its business. Here the GST on advertising media for an advertising agency is levied at a rate of 18% on a commission basis.

GST on Advertising Media-If Advertising is Done by Resident Outside India

According to Section 5(3) of the IGST Act, the Reverse Charge Mechanism applies to notified goods and services. This again applies to any supply of service by a taxpayer who is located in any non-taxable territory or to any individual located in a taxable area.

 GST on Advertising Media -ITC on Advertising Media Services

The advertising companies have to pay a lot for the types of equipment and high-end electronic goods that are required for the business. But they are entitled to get credit for the same. Advertising agencies can carry out their shoots in remote locations. They are charged GST as (IGST+CGST+SGST). Hence, GST on advertising media is 18%.

Conclusion

Advertising agencies that have applied for a composition scheme can pay GST at a lower rate. They have been prioritized and given an exception by the Government. Agencies if doing outdoor shoots will also have to pay GST on all locations such as hotels or food eatery. They cannot claim an exception saying that they already have paid GST before.  Whatever the medium is GST on advertising media is charged at a rate of 18%.

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