- Digital Media – 18%
- Print Media – 5%
GST on Advertisements on Cellular, Web site, Apps and so forth
GST on Advertisements on Cellular, Web site, Apps or another Digital Media platforms is levied @ 18%. The advertiser i.e. the one who is giving the commercial could be required to pay GST to the writer i.e. the service supplier and the service supplier could be required to deposit this GST with the govt..
This may be defined with the assistance of an instance:-
Karan Batra sells an commercial on his web site charteredclub.com to Reliance Jio for Rs. 2,00,000 per 30 days. GST could be levied on this quantity @ 18%.
| Commercial Costs | Rs. 2,00,000 | |
| (Add) | GST @ 18% | Rs. 36,000 |
| Complete Costs incl. GST | Rs. 2,36,000 |
Mr. Karan Batra could be required to deposit this Rs. 36,000 with the Govt. stating in his GST Return that he has acquired Rs. 36,000 as GST from Reliance Jio.
GST on Print Advertisements
GST on Print Advertisements is levied @ 5%. GST on Print Advertisements is levied in the identical method as GST on Digital Advertisements apart from the truth that the speed of GST is decrease on print advertisements as in comparison with Digital Advertisements.
The style of levy of GST on Print Advertisements might be defined with the assistance of an instance.
For instance: Instances of India sells an commercial to Flipkart for Rs. 5,00,000. GST on Advertisements @ 5% could be levied as follows:-
| Commercial Costs | Rs. 5,00,000 | |
| (Add) | GST @ 5% | Rs. 25,000 |
| Complete Costs incl. GST | Rs. 5,25,000 |
Instances of India could be required to deposit this Rs. 25,000 with the Govt. stating that he has acquired Rs. 25,000 as GST from Instances of India.
GST on Commercial Companies
In some instances – the advertiser hires an commercial company for the aim of promoting. The commercial company acts on behalf of the advertiser and does all of the work. In such instances, GST could be levied as follows:-
Case 1: Commercial Company buys commercial on print media by itself identify from the writer after which sells it to the Advertiser.
For eg: An commercial company buys house from Instances of India for Rs. 1,00,000 after which sells it to his consumer – Ola Cabs for Rs. 1,20,000. Instances of India raised bill to the commercial company for Rs. 1,00,000 after which the commercial company raises bill on Ola Cabs for Rs. 1,20,000.
In such instances GST could be levied as follows
GST on Buy by Advert Company from Instances of India- 5% on Rs. 1,00,000
GST on Buy by Ola Cabs from Instances of India- 5% on Rs. 1,20,000
Case 2: The commercial company doesn’t purchase the commercial by itself identify. The commercial is bought on the identify of the consumer however the commercial company fees a charges/ fee from Instances of India for facilitating this transaction.
For eg: An Commercial Company helps his consumer – Tata Motors to place an Commercial on Instances of India for Rs. 1,20,000. The bill is ready instantly within the identify of Tata Motors. The advert company raises a separate bill for its fee of Rs. 20,000 on Instances of India for offering its service.
In such instances GST could be levied as follows:-
GST on Print Media Advert – 5% of Rs. 1,20,000
GST on Fee – 18% of Rs. 20,000
In each the above talked about instances, if the commercial company fees another charges for designing or drafting the commercial and such charges is charged further from the consumer, GST on such advertisements could be levied @ 18%.
In case the above 2 advertisements have been printed on Digital Media as an alternative of Print Media – GST could be 18% in all of the instances.
Bill for GST on Advertisements
The one who is offering this service of Commercial ought to increase a correct bill for a similar in accordance with the Bill Guidelines clearly mentioning the
- Bill Date
- Bill Quantity
- Identify and Handle of Provider
- Identify and Handle of Recipient
- GST No. of the Provider & Recipient
- A number of different particulars
There isn’t a prescribed format by the govt. for elevating an bill. The govt. has solely mandated that sure gadgets are obligatory to be talked about on all invoices. The place the place these particulars are to be talked about just isn’t obligatory.
- Really useful Learn: How and When to boost a GST Bill – Explaining all Sensible Situations
Different Related Factors
- In case the vendor of advert house is not registered in GST – he shall not cost GST from the consumer.
- The customer of commercial can declare the good thing about Enter Tax Credit score for the GST paid.
- In case the vendor of Advert Area is registered outdoors India – GST could be levied on Reverse Cost Foundation. In such instances – the Advertiser wouldn’t be required to deposit this GST with the Advert writer however could be required to instantly deposit the identical with the Govt. (Really useful Learn: Reverse Cost defined with Examples).
- In case the vendor of Advert Area is registered outdoors and it’s a case of OIDAR like Fb Advertisements – GST could be levied within the method as talked about on this article – GST on OIDAR.