{"id":21015,"date":"2020-12-03T14:35:35","date_gmt":"2020-12-03T09:05:35","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=21015"},"modified":"2020-12-03T14:42:08","modified_gmt":"2020-12-03T09:12:08","slug":"gst-on-marketing-and-advertising-platforms","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/gst-on-marketing-and-advertising-platforms\/","title":{"rendered":"An Overview on Implementing GST on Marketing and Advertising Platforms"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The marketing and advertising sector plays an important role in the success of any business. In a normal course of business marketing and advertising is the promotional activity generally using mediums to increase the reach for a growing business. There were many changes done in this industry in the previous decade with an increase in concurrent competition, halting lower-priced brands and also an increase in the expenditure related to digital ads. Lets us understand the impact of GST on marketing and advertising industries.<\/p>\n\n\n\n<p>Marketing services generally include both audio and visual activities that include television, digital marketing, radio, social media marketing etc. On the other hand, advertisement services include ads in newspapers, magazines, radio, television, direct mail, catalogues etc.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/gst-on-marketing-and-advertising-platforms\/#Situation_prior_to_implementation_of_GST_on_Marketing_and_Advertising\" >Situation prior to implementation\nof GST on Marketing and Advertising<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/gst-on-marketing-and-advertising-platforms\/#Post_Implementation_of_GST_on_Marketing_and_Advertising_Sector\" >Post Implementation of GST on Marketing\nand Advertising Sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/gst-on-marketing-and-advertising-platforms\/#The_Input_Tax_Credit_on_GST_on_Marketing_and_Advertising\" >The Input Tax Credit on GST on\nMarketing and Advertising<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/gst-on-marketing-and-advertising-platforms\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Situation_prior_to_implementation_of_GST_on_Marketing_and_Advertising\"><\/span>Situation prior to implementation\nof GST on Marketing and Advertising<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>The service tax was imposed prior to the implementation of GST and it was applicable to the marketing and advertising services.<\/strong><\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Marketing<\/h3>\n\n\n\n<p>Before GST, a\nservice tax was imposed on the promoting and marketing services of &#8216;brand of\ngoods&#8217;, business entity and services events. The following activities were\ntaxable previously under the finance act.<\/p>\n\n\n\n<ul><li>Any\nbrand promotion services which could be provided by any individual to any other\nperson.<\/li><li>The\nservices could be provided directly or indirectly through any entity of\nbusiness or otherwise.<\/li><li>Any\nservices provided under a contractual obligation for the promotion of the\nbrand.<\/li><li>All the\nservices related to marketing or a promotion of brand.<\/li><li>The\nbrand must be an endorsement of name, services or goods.<\/li><li>Any\nservices appear in the promotional or advertising events which are carrying out\nany promotional activity of such services, event or goods.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Advertising<\/h3>\n\n\n\n<p>The service taxes were applicable to all aspects of the advertising services except time or space for advertisement. Similarly, sale of time slots which exist between programs on the television, and the sale of the hoarding space, such were not taxable. <strong><em>But after October 1, 2014<\/em><\/strong>, a list was amended to put a limit on non-taxability of the sale of space especially in print media and with that, all time and space arrangements were brought under an ambit of service tax.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/gstr-1-filings-and-voluntary-compliance\/\">GSTR-1 \u2013 Everything you need to know about Filings and Voluntary Compliance<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Post_Implementation_of_GST_on_Marketing_and_Advertising_Sector\"><\/span>Post Implementation of GST on Marketing\nand Advertising Sector<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The following are the effects of GST on marketing and advertising sector:<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/image-1024x683.png\" alt=\"GST on Marketing and Advertising Sector\" class=\"wp-image-21016\" width=\"562\" height=\"374\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/image-1024x683.png 1024w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/image-300x200.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/image-768x512.png 768w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/image.png 1200w\" sizes=\"(max-width: 562px) 100vw, 562px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">GST on Advertising<\/h3>\n\n\n\n<p>GST is levied in\nall the modes of advertisement such as sale for space in the print media.\nThough it will lead to a rise in the cash outflow, the free flow of the credits\nof acquirement side leads to the overall cut in a value of advertising.<\/p>\n\n\n\n<p><strong><em>The following are of two types\nof advertising medium:<\/em><\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">GST on Digital Media<\/h4>\n\n\n\n<p>In transaction\nrelated to digital media generally, there are two parties involved- the\npublisher &amp; the advertiser. An advertiser is a person who wants to\nadvertise about the product or idea, and on the other hand, a publisher is one\nwho publishes these all advertisements. A particular advertisement on digital\nmedia is liable to GST at an 18% rate.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">GST on Print Media<\/h4>\n\n\n\n<p>The advertisement\nmade in print media are newspapers, a particular advertisement on print media\nis liable to GST at an 18% rate. A person who wants to advertise about the\nproduct contact to publisher of print media for the same (a publisher is one\nwho publishes these all advertisements).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">GST on Marketing<\/h3>\n\n\n\n<p>Every person who gets involved in the supply of goods or rendering of services is liable to be registered under <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a> if the turnover in the financial year of taxable service or supply of goods is above Rs 20 Lakh. Hence the GST would be applicable to all marketing services.<\/p>\n\n\n\n<p><strong><em>The following are rates of GST\non marketing services:-<\/em><\/strong><\/p>\n\n\n\n<ul><li>Rate of\nGST on marketing services is 18%<\/li><li>Rate of\nGST on Digital Media Advertising is 18%<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Input_Tax_Credit_on_GST_on_Marketing_and_Advertising\"><\/span>The Input Tax Credit on GST on\nMarketing and Advertising<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The supplier of\nmarketing and advertising services invests the huge amount of resources in the\npurchase of high-end electronic goods and also equipment which is necessary for\nthe business to run, but they were not permitted to claim the credit for same.\nHowever, under GST, they are allowed to claim the credit of the taxes paid on\nsuch those electronic goods and equipment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">SAC Code for Marketing Services<\/h3>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td><strong>SAS <\/strong><strong>Code<\/strong>   <\/td><td>\n  <strong>Market Services<\/strong>\n  <strong>&nbsp;<\/strong>\n  <\/td><\/tr><tr><td>\n  998371\n  <\/td><td>Market Research Activities   &nbsp;   <\/td><\/tr><tr><td>\n  998372\n  <\/td><td>Public opinion polling service   &nbsp;   <\/td><\/tr><tr><td>\n  998311\n  <\/td><td>Management services such as financial strategic, human <br>resources, supply chain management and management consulting.   &nbsp;   <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h3 class=\"wp-block-heading\">SAS Code for Advertising Services<\/h3>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>SAS Code<\/strong>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  <strong>Advertising services<\/strong>\n  <\/td><\/tr><tr><td>\n  998361\n  <\/td><td>Provisionof advertising time &amp; space and advertising <br>services   &nbsp;   <\/td><\/tr><tr><td>\n  998362\n  <\/td><td>Sale or purchase of the advertising time or space on commission   &nbsp;   <\/td><\/tr><tr><td>\n  998363\n  <\/td><td>Sale of advertisement space in print media   &nbsp;   <\/td><\/tr><tr><td>\n  998364\n  <\/td><td>Sale of radio and TV advertising time   &nbsp;   <\/td><\/tr><tr><td>\n  998365\n  <\/td><td>Internet advertising space on sale   &nbsp;   <\/td><\/tr><tr><td>\n  998366\n  <\/td><td>Sale of other advertising item or space   &nbsp;   <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is evident that advertising and marketing are the biggest emerging industries, and the <strong><em>government<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Government\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> is willing to take gain from it. The Ads and marketing industry space were previously roamed with negligible tax rates for many years as it was unavailable on the scale. Now the GST is levied in all modes of advertisement such as the sale of the space in the print media. <\/p>\n\n\n\n<p>Though, it will lead to rising is the cash outflow, the free flow of credits of acquirement side leads to the overall cut in the value of advertising. On the other hand, a person who gets involved in the rendering of services of marketing is liable to pay the GST if its turnover in the financial year of taxable service is above Rs 20 Lakh.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/benefits-of-gst-registration-online-in-india\/\">Everything you Need to Know about Benefits of GST Registration<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The marketing and advertising sector plays an important role in the success of any business. In a normal course of business marketing and advertising is the promotional activity generally using mediums to increase the reach for a growing business. There were many changes done in this industry in the previous decade with an increase in [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":21020,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[1276],"acf":{"service_id":"96"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":7023,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21015"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=21015"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21015\/revisions"}],"predecessor-version":[{"id":21031,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21015\/revisions\/21031"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/21020"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=21015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=21015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=21015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}