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Govt clarifies GST on newspaper ad space sale

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Govt clarifies GST on newspaper ad space sale
Space selling for advertisement in print media will attract 18 per cent GST (goods and services tax) if an agency does so as an agent ofanewspaper on commission basis, the government said on Wednesday.

GST of five per cent will be levied if the advertisement agency works on principal to principal basis —buys space from the newspaper and sells such space for advertisement to clients on its own account,afinance ministry statement said.

As an illustration, ifanewspaper sellsaunit of space worth Rs 100 to an advertisement agency for Rs 85 (afteratrade discount of Rs  15) and the agency sells the space to client at Rs 100, the newspaper would pay 5 per cent GST on Rs 85 and the advertisement agency a similar amount of tax on Rs 100.

Business Standard New Delhi, 24th August 2017

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