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Selling of Space for advertisement in print media shall attract GST @ 5% and in all other cases, the GST shall be attracted @ 18%.

Classification of service— In the instant case, applicanst is seeking an advance ruling on classification, applicability of notification, value of supply & rate of tax thereon on various mode of agreements.

1.1 What will be the classification and taxability, in case designing/fabrication/production is bundled with the services provided in question 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

Held that— (i) Selling of Space for advertisement in print media shall attract GST @ 5% and in all other cases, the GST shall be attracted @ 18% as on date.

(iii) The designing/fabrication/production shall formed part of Composite supply and shall attract GST at the rate as specified.

(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 243W of the Constitution is exempted from GST.