CURRENT AFFAIRS

Detailed explanation-1: -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.

Detailed explanation-2: -The agent buys the space on behalf of the advertiser and charges a commission for that. GST levied would be at the rate of five percent and 18 percent for advertisement in print media and digital media, respectively. The agent would levy 18 percent GST on the commission charges.

Detailed explanation-3: -20 17 given by Ministry of Finance, GOI clarified as follows: “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 not a part of any composite supply, the same would be liable to tax 18%.

Detailed explanation-4: -The HSN CODE FOR Sale of advertising space in print media (except on commission) is 998363. The full form of HSN Code is Harmonized System of Nomenclature. It was introduced in 1988 by the World Customs Organization (WCO).