Page 92 - CA Final GST

Badlani Classes

(i) Senior Advocate to Exempt Taxable - 100%
business Entity payable by
business
entity
(ii) Representation service Exempt Taxable - 100%
by Senior Adv. to business payable by
Entity business
entity
(iii) Representation Exempt Taxable - 100%
service by Senior Adv. to payable by
Business Entity, indirectly business
through other entity [In
advocates/law-firm this case,
business
entity is
deemed to
be SR]

Taxability of Special Services
SELLING OF SPACE FOR ADVERTISEMENT IN PRINT MEDIA
1- “Print media” means,.-
(i) “book”, but does not include-
• business directories, yellow pages and trade catalogues.
• which are primarily meant for commercial purposes;
(ii) “newspaper”
Selling of space for Advertisement in print media is taxable at 5% GST (TOTAL),
while others are taxable at 18%.
2- Mere canvassing advertisement – Taxable: Merely canvassing (i.e.,
seeking/obtaining) advertisement for publishing on a commission basis by
persons/agencies is taxable.
CBIC Press Release No. 92/2017 , dated 23-08-2017
Clarification on value liable to GST in case of advertisement agency giving
Advertisement in print media etc.
1- Buying and selling space on own account-Print media-GST is 5%: If the
advertisement agency works on principal to principal basis, that is, buys space
from the newspaper and sells such space for advertisement to clients on its own
account, that is, as a principal, it would be liable to pay GST @ 5% on the full
amount charged by advertisement agency from the client.
2- Commission liable to GST @ 18%: On other hand, if the advertisement agency
sells space for advertisement as an agent of the newspaper on commission basis, it
would be liable to pay GST @ 18% on the sale commission it receives from the
Newspaper. ITC of GST paid on such sale commission would be available to
newspaper.
3- Design or drafting advertisement is taxable @ 18%: However, if the
advertisement agency supplies any service other than selling of space for
advertisement, such as designing or drafting the advertisement, and such supply is
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not a part of any composite supply, the same would be liable to tax @ 18% . If

Central Goods & Services Tax Act, 2017