Government has clarified that five percent 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 percent of the sale commission, if the agency works as an agent of the newspaper on commission basis. The Finance Ministry said, 18 percent GST will be liable, if the advertisement agency supplies any service other than 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 percent.