New GST on Advertisement Services: Digital and Print Media
From billboards to Instagram ads, advertisements are everywhere—and so is GST. Whether you’re an agency, a media company, or a business booking ads, understanding the gst on advertisement services is key to budgeting and billing right.
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New GST Rate on Advertisement Services in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for advertisement services (no compensation cess).
Advertisement New GST Rate
| Ad Type | New GST Rate |
|---|---|
| Digital / online advertisement | 18% |
| Print ads (space only – newspaper) | 5% |
| Print ads (space + creative/design/content) | 18% |
| TV and radio advertisements | 18% |
| Outdoor ads (hoardings, banners) | 18% |
| Sponsorships and brand promotion | 18% |
Note: If an agency sells newspaper ad space as an agent, GST at 18% applies on the commission; pure sale of space in print media remains at 5%.
New GST Rate on Newspaper Advertisement in India
| Nature of Print Ad Service | New GST Rate |
|---|---|
| Ad space only (newspaper) | 5% |
| Ad space + design/content creation | 18% |
| Magazine advertisements | 18% |
Reminder: “Print media” for the 5% rate covers newspapers/books; magazines and other media remain at 18%.
What Are Advertisement Services Under GST?
Under GST law, advertisement services include:
- Digital ads on Google, Facebook, Instagram, YouTube, etc.
- Print ads in newspapers and magazines
- TV and radio commercials
- Outdoor hoardings and banners
- Sponsorships and event branding
These services fall under SAC Code 998361 and are taxable, except for certain exemptions.
Advertisement Old GST Rate
| Ad Type | GST Rate |
|---|---|
| Digital/online advertisement | 18% |
| Print ads (own content + space) | 18% |
| Print ads (space only – newspaper) | 5% |
| TV and radio ads | 18% |
| Outdoor ads (hoardings, banners) | 18% |
| Sponsorships and brand promotion | 18% |
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GST on Digital Advertisement Services
The gst on online advertisement is 18%, and it applies to:
- Social media ads
- Google Ads and search engine promotions
- Influencer marketing billed via agency
- YouTube or video-based ads
Old GST Rate on Newspaper Advertisement
| Nature of Print Ad Service | GST Rate |
|---|---|
| Ad space only (newspaper) | 5% |
| Ad space + design/content creation | 18% |
| Magazine advertisements | 18% |
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GST Compliance for Ad Agencies and Clients
- Use SAC Code 998361 in invoices
- Charge 18% GST (unless 5% applies for newspaper space)
- File GSTR-1 and GSTR-3B regularly
- Clients can claim Input Tax Credit on GST paid
GST on Foreign Digital Ads
When billed from outside India (e.g., Facebook Ireland, Google Singapore):
- GST @ 18% is payable under Reverse Charge Mechanism
- Applicable only to GST-registered businesses in India
- Business must self-invoice and pay GST to remain compliant
Conclusion
Whether you’re placing a print ad or running a digital campaign, understanding the gst on advertisement ensures your billing is accurate and your tax returns remain compliant.
I am a chartered accountant with over 14 years of experience. I understand income tax, GST, and balancing financial records. I analyze financial statements and tax codes effectively. However, I also have a passion for writing, which is different from working with numbers. Recently, I started writing articles and blog posts. My goal is to make finance easier for everyday people to understand.
Frequently Asked Questions (FAQs)
- What is the advertisement GST rate in India?18% standard rate; 5% for print ad space.
- What is the GST rate on newspaper advertisement?5% for ad space only; 18% if design/content included.
- How much GST is charged on digital ads?18% on all online advertisements.
- Can businesses claim Input Tax Credit on ad spend?Yes, if ads promote business & invoices have company GSTIN.
- Are influencer marketing services taxed under GST?18% on influencer campaigns via agencies.
