Case Law Details
In re Harmilap Media (P) Ltd. (GST AAR Uttarakhand)
(a) applicability of GST rate on selling of space/ time for advertisement in print media in case of advertising companies;
Selling of space for advertisement in print media by advertising company/ agency shall attract GST @ 5% [2.5% CGST + 2.5% SGST] in case of advertising companies/ agencies in all cases. However Volume incentives/ value incentives are part of commission and cannot be treated as sale of space in print media and therefore incentive will be charged @ 18%.
(b) applicability of GST rate if advertising company/ agency sells unit of Space in print media to client and designing/ composing is being done by advertising company/agency without charging separately in the bill for designing, etc., to client;
Composite supply comprises of selling of space in print media and designing/composing of the advertisement, shall attract GST @ 5% [2.5% CGST + 2.5% SGST] inasmuch as “selling of space in print media” is a principal supply which attract GST @ 5% [2.5% CGST + 2.5% SGST] as on date. Advertisement company/agency sells unit of space in print media to client and designing/composing is being done by advertising company /agency without charging separately in the bill for designing, etc., to client. Such case is a case of composite supply and in such case “selling of space in print media” is a principal supply. Hence it will attract GST @ 5% [2.5% CGST + 2.5% SGST] as on date.
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