Govt Clears The Air On GST On Newspaper Ad Space Sale
Nirmal Singh Lotus Green points out the fact that as much as 18 per cent of GST will be applicable on selling space for advertisements in print media, this will get into effect by an agent of a newspaper on commission basis, the government assured today. Nirmal Singh Lotus Green would further like to quote a finance ministry’s statement which said: GST of 5 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. For instance, an illustration space in a newspaper unit would cost worth Rs 100 but to an advertising agency it would only cost Rs 85 (after a trade discount of Rs 15) and the agency sells the ad space to the client for Rs 100 and the newspaper would pay 5 per cent GST on Rs 85 and the advertisement agency send amount of tax on 100. Nirmal Singh Lotus Green further mentions that if the advertising firm sell off the space for ...