Case Law Details
In re Harmilap Media (P) Limited (GST AAR Uttarakhand)
(i) Selling of Space for advertisement in print media shall attract GST @ 5%[2.5% CGST+2.5% SGST] and in all other cases, the GST shall be attracted @ 18% [9% CGST+ 9% SGST] as on date.
(ii) Classification of services shall be as under:
| Annexure: Scheme of Classification of Services | |||
| S.No. | Chapter, Section, Heading or Group | Service Code (Tariff) | Service Description |
| (1) | (2) | (3) | (4) |
| 338 | Group 99836 | Advertising services and provision of advertising space or time | |
| 339 | 998361 | Advertising Services | |
| 340 | 998362 | Purchase or sale of advertising space or time, on commission | |
| 341 | 998363 | Sale of advertising space in print media (except on commission) | |
| 342 | 998364 | Sale of television and radio advertising time | |
| 343 | 998365 | Sale of internet advertising space | |
| 344 | 998366 | Sale of other advertising space or time (except on commission) | |
(iii) The designing/fabrication/production shall formed part of Composite supply and shall attract GST at the rate as specified in serial no. (i) Above.
(iv) Discounts of any kind shall be excluded from the taxable value subject to the fulfilment of condition prescribed in law.
(v) The registered person who has issued credit notes shall adjust his tax liability subject to the fulfilment of condition prescribed in law.
(vi) The services provided by the advertising agency to the Central Government. State Government. UT or Local Authority or Government Authority or a Government Entity, by way of any activity in relation to any function entrusted to a Panchyat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under Article 243 W of the Constitution is exempted from GST in terms of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017(as amended from time to time) read with clarification dated 03.05.2018 issued by TRU, Department of Revenue.
(vii) The specified services, as mentioned in serial no. (vi), provided by Radio/TV/Outdoor/Internet/Telecom/ any other advertiser to the advertising agency, are exempted from GST in terms of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time).
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, UTTARAKHAND
1. This is an application under Sub-Section (1) of Section 97 of the CGST/SGST Act, 2017 (herein after referred to as Act) and the rules made thereunder filed by M/s Harmilap Media (P) Ltd, 2nd Floor, C-24, Medo Plaza, Rajpur Road, Dehradun seeking an advance ruling on classification, applicability of notification , value of supply & rate of tax thereon on various mode of agreements as mentioned there under:-
i. the advertising agency purchases time/space from Radio Broadcaster or Television Channel for its clients. Radio Broadcaster or Television Channel raised bill in the name of advertising agency, which may or may not show trade discount/additional trade discount. The GST is charged on net amount after all type of discount (if any). Agency raised bill in the name of the client at Govt/Market/Customerized/Deal rates. In this bill advertising agency may show some trade discount/additional trade discount/commission. The GST is charged on net amount after all types of discounts (if any). What will be the classification and tax rate on this supply.
ii. the advertising agency purchases time/space from Radio Broadcaster or Television Channel for its clients. Radio Broadcaster or Television Channel raised bill in the name of advertising agency, which may or may not show trade discount/additional trade discount. The GST is charged on net amount after all type of discount (if any). Agency raised bill in the name of the client at Govt/Market/Customerized/Deal rates. In this bill advertising agency shows the Radio Broadcaster/TV Channel amount, discount/additional trade discount (if any) and its media buying charges/agency charges separately. Both are added and GST is charged on sum of both amounts. What will be the classification and tax rate on this supply.
iii. the advertising agency purchases time/space from Radio Broadcaster or Television Channel for its clients. Broadcaster or Television Channel raised bill in the name of the client, whose advertisement is telecasted/broadcasted. The bill may show advertising agency charges/discount/share to be paid to agency. There may be a case, in which Radio Broadcaster or Television Channel may not show the agency charges/discount/share paid to the agency. Agency raised a separate bill for its share. The GST is charged on the amount after discount/additional discount (if any). What will be the classification and tax rate on this supply.
iv. the advertising agency purchases space from Outdoor Company for it’s client. The Outdoor Company raised bill in the name of advertising agency, which may or may not show trade discount/additional trade discount. The GST is charged on net amount after all type of discount (if any). Agency raised bill in the name of the client at Govt/Market/Customerized/Deal rates. In this bill advertising agency may show some trade discount/additional trade discount/commission. The GST is charged on net amount after all types of discounts (if any). What will be the classification and tax rate on this supply.
v. the advertising agency purchases time/space from Outdoor Company for its clients. Outdoor Company raised bill in the name of advertising agency, which ‘ may or may not show trade discount/additional trade discount. The GST is charged on net amount after all type of discount (if any). Agency raised bill in the name of the client at Govt/Market/Customerized/Deal rates. In this bill advertising agency shows the Outdoor Company amount, discount/additional trade discount (if any) and its media buying charges/agency charges separately. Both are added and GST is charged on sum of both amounts. What will be the classification and tax rate on this supply.
vi. the advertising agency purchases time/space from Outdoor Company for its clients. Outdoor Company raised bill in the name of the client, whose advertisement is telecasted/broadcasted. The bill may show advertising agency charges/discount/share to be paid to agency. There may be a case, in which Outdoor Company 1 may not show the agency charges/discount/share paid to the agency. Agency raised a separate bill for its share. The GST is charged on the amount after discount/additional discount (if any). What will be the classification and tax rate on this supply.
vii. the advertising agency purchases time/space from Internet Company for its clients. Internet Company raised bill in the name of advertising agency, which may or may not show trade discount/additional trade discount. The GST is charged on net amount after all type of discount (if any). Agency raised bill in the name of the client at Govt/Market/Customerized/Deal rates. In this bill advertising agency may show some trade discount/additional trade discount/commission. The GST is charged on net amount after all types of discounts (if any). What will be the classification and tax rate on this supply.
viii. the advertising agency purchases time/space from Internet Company for its clients. Internet Company raised bill in the name of advertising agency, which may or may not show trade discount/additional trade discount. The GST is charged on net amount after all type of discount (if any). Agency raised bill in the name of the client. In this bill advertising agency shows the Internet Company amount, discount/additional trade discount (if any) and its media buying charges/agency charges separately. Both are added and GST is charged on sum of both amounts. What will be the classification and tax rate on this supply.
ix. the advertising agency purchases time/space from Internet Company for its clients. Internet Company raised bill in the name of the client, whose advertisement is telecasted/broadcasted. The bill may show advertising agency charges/discount/share to be paid to agency. There may be a case, in which Internet Company may not show the agency charges/discount/share paid to the agency. Agency raised a separate bill for its share. The GST is charged on the amount after discount/additional discount (if any). What will be the classification and tax rate on this supply.
x. the advertising agency purchases time/space from Print Media Company for its clients. Print Media Company raised bill in the name of advertising agency, which may or may not show trade discount/additional trade discount. The GST is charged on net amount after all type of discount (if any). Agency raised bill in the name of the client at Govt/Market/Customerized/Deal rates. In this bill advertising agency may show some trade discount/additional trade discount/commission. The GST is charged on net amount after all types of discounts (if any). What will be the classification and tax rate on this supply.
xi. the advertising agency purchases time/space from Print Media Company for its clients. Print Media Company raised bill in the name of advertising agency, which may or may not show trade discount/additional trade discount. The GST is charged on net amount after all type of discount (if any). Agency raised bill in the name of the client. In this bill advertising agency shows the Print Media Company amount, discount/additional trade discount (if any) and its media buying charges/agency charges separately. Both are added and GST is charged on sum of both amounts. What will be the classification and tax rate on this supply.
xii. the advertising agency purchases time/space from Print Media Company for its clients. Print Media raised bill in the name of the client, whose advertisement is telecasted/broadcasted. The bill may show advertising agency charges/discount/share to be paid to agency. There may be a case, in which Print Media Company may not show the agency charges/discount/share paid to the agency. Agency raised a separate bill for its share. The GST is charged on the amount after discount/additional discount (if any). What will be the classification and tax rate on this supply.
xiii. the advertising agency purchases messages/personal communication in the form of audio, video or text or image or in any other way from Telecom/Internet/Other Company’s for its clients. Telecom/Internet/Other Company raised bill in the name of advertising agency, which may or may not show trade discount/additional trade discount. The GST is charged on net amount after all type of discount (if any). Agency raised bill in the name of the client at Govt/Market/Customerized/Deal rates. In this bill advertising agency may show some trade discount/additional trade discount/commission. The GST is charged on net amount after all types of discounts (if any). What will be the classification and tax rate on this supply.
xiv. the advertising agency purchases messages/personal communication in the form of audio, video or text or image or in any other way from Telecom/Internet/Other Company’s for its clients. Telecom/Internet/Other Company raised bill in the name of advertising agency, which may or may not show trade discount/additional trade discount. The GST is charged on net amount after all type of discount (if any). Agency raised bill in the name of the client. In this bill advertising agency shows the Telecom/Internet/Other Company amount, discount/additional trade discount (if any) and its media buying charges/agency charges separately. Both are added and GST is charged on sum of both amounts. What will be the classification and tax rate on this supply
xv. the advertising agency purchases messages/personal communication in the form of audio, video or text or image or in any other way from Telecom/Internet/Other Company’s for its clients. Telecom/Internet/Other Company raised bill in the name of the client, whose advertisement is telecasted/broadcasted. The bill may show advertising agency charges/discount/share to be paid to agency. There may be a case, in which Telecom/Internet/Other Company may not show the agency charges/discount/share paid to the agency. Agency raised a separate bill for its share. The GST is charged on the amount after discount/additional discount (if any). What will be the classification and tax rate on this supply.
1.1 What will be the classification and taxability, in case designing/fabrication/production is bundled with the services provided in question (i) to (xv) above and is not being billed separately.
1.2 What will be the value of supply in case trade discount/additional discount/agency commission is deducted in the invoices raised in the name of the advertising agency by the TV/Radio/Outdoor Company/Publication/Internet/Telecom/Other company.
1.3 What will be the taxability of cash discount received by the advertising agency, in context of transactions mentioned in above questions, at the time of making payment to TV/Radio/Outdoor Company / Publication/ Internet/Telecom/Other company.
1.4 What will be the taxability of value/volume based discount received by the advertising agency, from TV/Radio/Outdoor Company/Publication/Internet/Telecom/Other company in the form of credit notes issued after the date of invoice.
1.5 Whether the supply made by the advertising agency as mentioned in aforesaid questions to the Central Government, State Government, UT or Local Authority or Government Authority or a Government Entity, by way of any activity in relation to any function entrusted to a Panchyat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under Article 243W of the Constitution is exempted from GST in terms of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time).
1.6 In specified cases where the answer to question 1.5 is in affirmative, then whether supply made by TV/Radio/Outdoor Company/Publication/Internet/Telecom/Other company to the advertising agency is also exempted in terms of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time).
2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.
3. As per the said subsection (2) of Section 97 of the CGST/SGST Act, 2017 advance ruling can be sought by an applicant in respect of:-
(a) Classification of any goods or services or both
(b) Applicability of a notification issued under the provisions of this Act, /(c) Determination of time and value of supply of goods or services or both,
(d) Admissibility of input tax credit of tax paid or deemed to have been paid
(e) Determination of the liability to pay tax on any goods or services or both
(f) Whether the applicant is required to be registered
(g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term
4. In the present case applicant has sought advance ruling on applicability of GST rate on supply of goods and their classification. Therefore, in terms of said Section 97(2)(a), (b), (c ) & (e) of CGST/SGST Act, 2017, the present application is hereby admitted.
5. Accordingly opportunity of personal hearing was granted to the applicant on————. Shri—————–, on behalf of the applicant appeared for personal hearing on the said date. Ms Preeti Manral, Deputy Commissioner, SGST-Dehradun, concerned officer appointed by the State Authority, also present during the hearing proceedings.
6. In the present case we are not deciding any wider question but restricting our conclusion to the facts and circumstances which was filed for our consideration in the application. Now we proceed by taking the issue one by one:
7. On perusal of various mode of agreements (supra), we find that the classification and rate of tax has already been determined vide Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time) which are self explanatory and therefore do not require any elaboration. The relevant provisions of the said notification are reproduced below for ready reference:
| Annexure: Scheme of Classification of Services | |||
| S.No. | Chapter, Section, Heading or Group | Service Code (Tariff) | Service Description |
| (1) | (2) | (3) | (4) |
| 338 | Group 99836 | Advertising services and provision of advertising space or time | |
| 339 | 998361 | Advertising Services | |
| 340 | 998362 | Purchase or sale of advertising space or time, on commission | |
| 341 | 998363 | Sale of advertising space in print media (except on commission) | |
| 342 | 998364 | Sale of television and radio advertising time | |
| 343 | 998365 | Sale of internet advertising space | |
| 344 | 998366 | Sale of other advertising space or time (except on commission) | |
Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017
G.S.R….(E).-In exercise of the powers conferred by sub-section (1) of section 9, sub-section (1) of section 11, sub-section (5)of section 15 and sub-section (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017),the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby notifies that the central tax, on the intra-State supply of services of description as specified in column (3)of the Table below, falling under Chapter, Section or Heading of scheme of classification of services as specified in column (2), shall be levied at the rateas specified in the corresponding entry in column (4), subject to the conditions as specified in the corresponding entry in column (5) of the said Table:-
| SI No. | Chapter, Section or Heading | Description of Service | Rate(per cent.) | Condition |
| (1) | (2) | (3) | (4) | (5) |
| 1 | Chapter 99 | All Services | ||
| 21 | Heading 9983(Other professional, technical and business services | (i) Selling of space for advertisement in print media | 2.5 | – |
| (ii) Other professional, technical and business services other than (i) above. | 9 | – |
8. The applicant further raised question on the classification and taxability, in case the designing/fabrication/production is bundled with the services provided in question (i) to (xv) above and is not being billed separately.
8.1 To appreciate the law position in this regard, we reproduce the relevant portion of the Act as under:
(i) Section 2(30) of the Act ibid, “composite supply” means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and. supplied, in conjunction with each other in the ordinary course of business, one of which is a principal supply;
(ii) Section 2(90) of the Act ibid “principal supply” means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary;
(iii) Section 8 of the Act ibid: The tax liability on a composite or a mixed supply shall be determined in the following manner, namely:-
(a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and
(b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax.
On analysis of legal provisions & various mode of agreements, we observe that in case the designing/fabrication/production is bundled with the services provided in question (i) to (xv),supra, then the same falls under ‘composite supply’ in as much as services of ‘selling of space for advertisement’ constitutes the predominant element and therefore becomes the “principal supply” and the designing/fabrication/production shall form the part of that composite supply as ancillary in as much as ‘selling of space for advertisement’ cannot be effectively accomplished without designing/fabrication/production. Thus such ancillary activities having a direct and proximal nexus with ‘selling of space for advertisement’. Accordingly the classification and tax liability has to be adjudged as discussed in para 7 (supra)
- Now we come to the question of value of supply in case trade discount/additional discount/agency commission is deducted in the invoices raised in the name of the advertising agency by the TV / Radio/ Outdoor Company/ company. In this context, we find that Section 15 of the Act deals with value of taxable supply and the same is reproduced ag under:
(1) The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply.
(2) The value of supply shall include,-
(a) any taxes, duties, cesses, fees and charges levied, under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier;
(b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both;
(c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services;
(d) interest or late fee or penalty for delayed payment of any consideration for any supply; and
(e) subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments.
Explanation.- For the purposes of this sub-section, the amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy.
(3) The value of the supply shall not include any discount which is given,-
(a) before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and
(b) after the supply has been effected, if,-
(i) such discount is established in terms of on agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and
(ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier been reversed by the recipient of the supply.
9.1 In view of the legal provisions (supra), the commission shall form the part of taxable value and discount of any kind is excluded from the taxable value subject to the fulfillment of the conditions laid down in the said legal provisions . Hence in-bills discounts and discount established vide agreement before the time of supply subject to the reversal of ITC by the recipient is allowable deduction from the value of the supply,
10. As regard to the taxability on cash discount, the issue has been discussed in para 9 (supra),
11. As regard to the taxability on value/volume based discounts in form of credit notes after the date of invoice, we find that section 34(2) of the Act deals with the such kind of situation and the same is reproduced as under:-
(2) Any registered person who issues a credit note in relation to a supply of goods or services or both shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than September following the end of the financial year in which such supply was mode, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be prescribed:
Provided that no reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and interest on such supply has been passed on to any other person.
11.1 On perusal of legal provisions in this regard, we find that the registered person who had issued a credit note, can adjust his tax liability by following the procedure mentioned above, subject to the condition that incidence of tax on such supply, has not been passed on to any other person, Thus we observe that when a supplier requires to decrease the taxable value of a supply, he has to issue a credit note to the recipient and accordingly can reduce his tax liability for the concerned period provided that he has neither charged or collected tax on such supply.
12. As regard to the benefit of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time) in respect of the supply made by the advertising agency as mentioned in aforesaid questions to the Central Government, State Government, UT or Local Authority or Government Authority or a Government Entity, by way of any activity in relation to any function entrusted to a Panchyat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under Article 243W of the Constitution, the relevant legal provisions are reproduced as under:
G.S.R…(E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-State supply of services of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table, namely:-
| SI. No. | Chapter, Section, Heading, Group or Service Code (Tariff) | Description of Services | Rate (percent) | Condition |
| 1 | 2 | 3 | 4 | 5 |
| 3 | Chapter 99 | Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution | Nil | Nil |
The said notification was amended vide Notification No. 2/2018 Central Tax Rate) dated 25.01.2018 wherein entry 3A has been inserted after serial no. 3 as under:
| SI. No. | Chapter, Section, Heading, Group or Service Code (Tariff) | Description of Services | Rate (percent) | Condition |
| 1 | 2 | 3 | 4 | 5 |
| 3A | Chapter 99 | Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent, of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. | Nil | Nil |
12.1 On perusal of aforesaid exemption notification, we find that,-
(i) services supplied without involving of goods is a pure service
(ii) pure service must be supply to the Central Government, State Government or Union territory or local authority or a Governmental authority and supply of pure service is related to an activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution.
(iii) composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent, of the value of the said composite supply, provided to the Central Government, State Government or Union territory or local authority or a Governmental authority in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243 W of the Constitution.
12.2 We further find that the Technical Officer (TRU) vide letter F.NO. 254/90/2018-TRU dated 03.05.2018 addressed to Joint Commissioner, CCO, Delhi Zone, New Delhi has clarified that the services provided by the DAVP approved agencies on campaign for creating awareness for prevention of diseases to the Health Department is covered under the said notification in as much as ‘Public Health’ is a function entrusted to local authority under Article 243W read with the Twelfth Schedule S.No. 6. Accordingly we observe that the advertising agency providing services to the Central Government, State Government, Union territory or Local Authority or a Government Authority in relation to any function entrusted to a panchayat under article 243G of the Constitution or in relation any function entrusted to a Municipality under article 243 W of the Constitute are exempted from payment of GST subject to the fulfilment of the conditions.
13. The applicant further raised the question that in such specified cases (in para 12 supra), the supply made by the Radio/TV/outdoor/Internet/Telecom/any other advertiser to the advertising agency is also exempt from GST in terms of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017(as amended from time to time).
13.1 On perusal of said notification, we find that such exemption is also extended to Radio/TV/outdoor/Internet/Telecom/any other advertise, if such specified services has been provided in terms of S.No. 3A under Chapter-99 issued vide Notification No. 2/2018 Central Tax Rate) dated 25.01.2018.
ORDER
In view of the above discussion & findings we hold as under:
(i) Selling of Space for advertisement in print media shall attract GST @ 5%[2.5% CGST+2.5% SGST] and in all other cases, the GST shall be attracted @ 18% [9% CGST+ 9% SGST] as on date.
(ii) Classification of services shall be as under:
| Annexure: Scheme of Classification of Services | |||
| S.No. | Chapter, Section, Heading or Group | Service Code (Tariff) | Service Description |
| (1) | (2) | (3) | (4) |
| 338 | Group 99836 | Advertising services and provision of advertising space or time | |
| 339 | 998361 | Advertising Services | |
| 340 | 998362 | Purchase or sale of advertising space or time, on commission | |
| 341 | 998363 | Sale of advertising space in print media (except on commission) | |
| 342 | 998364 | Sale of television and radio advertising time | |
| 343 | 998365 | Sale of internet advertising space | |
| 344 | 998366 | Sale of other advertising space or time (except on commission) | |
(iii) The designing/fabrication/production shall formed part of Composite supply and shall attract GST at the rate as specified in serial no. (i) Above.
(iv) Discounts of any kind shall be excluded from the taxable value subject to the fulfilment of condition prescribed in law.
(v) The registered person who has issued credit notes shall adjust his tax liability subject to the fulfilment of condition prescribed in law.
(vi) The services provided by the advertising agency to the Central Government. State Government. UT or Local Authority or Government Authority or a Government Entity, by way of any activity in relation to any function entrusted to a Panchyat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under Article 243 W of the Constitution is exempted from GST in terms of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017(as amended from time to time) read with clarification dated 03.05.2018 issued by TRU, Department of Revenue.
(vii) The specified services, as mentioned in serial no. (vi), provided by Radio/TV/Outdoor/Internet/Telecom/ any other advertiser to the advertising agency, are exempted from GST in terms of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time).
