Sale of space for advertisement when it is supplied along with the artwork, where no consideration is charged for the artwork is classified under SAC 998366 as 'Sale of other advertising space or time’ and attracts 18% GST.
Classification of service— In the instant case, applicant is in the business of purchase and supply of advertisement space to the prospective customers.
Question raised before this authority is as follows—
1. Whether the services supplied by the applicant can be termed as the supply of space for advertisement in print media?
2. If yes, GST@5% can be charged on the invoices raised to the customers?
The applicant has sought clarification on sale of space for advertisement when it is supplied along with the artwork, where no consideration is charged for the artwork in certain cases. The understanding of the applicant is that the activity of artwork by the applicant forms part of composite supply of advertisement space and artwork and therefore the total supply should attract tax @5%.
Selling of space for advertisement in print media (SAC 998362) is taxable at the rate of 2.5% under CGST & SGST respectively. As against this the service for ‘Sale of other advertising space or time’ is enumerated as 998366. This is not specifically mentioned in the serial no. 21 of the notification no. 11/2017 (central tax rate). Clearly this service will fall under item (ii) of serial no. 21 i.e., other professional, technical & business services taxable at the rate of 9% under CGST & SGST respectively.
Held that— The services supplied by the applicant fall under ‘Other advertisement space’, which is having a separate SAC code i.e., 998366. GST is leviable @18%.
Sale of space for advertisement when it is supplied along with the artwork, where no consideration is charged for the artwork is classified under SAC 998366 as 'Sale of other advertising space or time’ and attracts 18% GST.
Classification of service— In the instant case, applicant is in the business of purchase and supply of advertisement space to the prospective customers.
Question raised before this authority is as follows—
1. Whether the services supplied by the applicant can be termed as the supply of space for advertisement in print media?
2. If yes, GST@5% can be charged on the invoices raised to the customers?
The applicant has sought clarification on sale of space for advertisement when it is supplied along with the artwork, where no consideration is charged for the artwork in certain cases. The understanding of the applicant is that the activity of artwork by the applicant forms part of composite supply of advertisement space and artwork and therefore the total supply should attract tax @5%.
Selling of space for advertisement in print media (SAC 998362) is taxable at the rate of 2.5% under CGST & SGST respectively. As against this the service for ‘Sale of other advertising space or time’ is enumerated as 998366. This is not specifically mentioned in the serial no. 21 of the notification no. 11/2017 (central tax rate). Clearly this service will fall under item (ii) of serial no. 21 i.e., other professional, technical & business services taxable at the rate of 9% under CGST & SGST respectively.
Held that— The services supplied by the applicant fall under ‘Other advertisement space’, which is having a separate SAC code i.e., 998366. GST is leviable @18%.