Query has been raised regarding GST applicable on selling of space for advertisement in print media. 

Selling of space for advertisement in print media is leviable to GST @ 5%.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. 

On the other hand, if the advertisement agency sells space for advertisement as an agent of the newspaper on commission basis, it would be liable to pay GST@ 18% on the sale commission it receives from the Newspaper. ITC of GST paid on such sale commission would be available to Newspaper.

However, 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%. If such supplies are part of any composite supply, the rate applicable for the principal supply shall apply.

Therefore, everything depends on the terms of the contract between the newspaper, advertisement agency and the client.

GST on advertising space: 5% if sold as principal; agent commission taxed at 18% with ITC to newspaper. Sale of print-media advertisement space is taxable at 5% where the seller (newspaper or an agency as principal) sells on its own account and may claim or utilise input tax credit accordingly. Where an agency acts as agent and earns commission, that commission is taxable at 18% and the input tax credit on the commission is available to the newspaper. Distinct services like design are taxable at 18% unless they form part of a composite supply, in which case the principal supply's rate applies. Contract terms determine the applicable treatment.