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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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 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
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.
