Category: GST

Posted on

Check Posts abolished 22 states and about to be abolished in 8 other states as per Press Release dated 03-07-2017

The Goods and Services Tax (GST) was rolled out on 1st of July 2017. With the roll out of the GST, 22 states in India have abolished their check posts. The details are as under –

1. Andhra Pradesh 2. Arunachal Pradesh 3. Bihar 4. Gujarat 5. Karnataka 6. Kerala 7. Madhya Pradesh 8. Maharashtra 9. Sikkim 10. Tamil Nadu 11. West Bengal 12. Chhattisgarh 13. Delhi 14. Goa 15. Haryana 16. Jharkhand 17. Odisha 18. Puducherry 19. Rajasthan 20. Telangana 21. Uttar Pradesh 22. Uttarakhand

States where check posts are in the process of being abolished 1. Assam 2. Himachal Pradesh 3. Manipur 4. Meghalaya 5. Nagaland 6. Punjab 7. Mizoram 8. Tripura

Posted on

Selling of Space for advertisement in print media by Advertising Agency: Clarification dt 23-08-2017

  1. Selling of space for advertisement in print media is leviable to GST @ 5%
  2. If advertisement agency works on Principal to Principal basis: 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.  E.g. The news agency buys space of Rs. 100 at discount of Rs. 15 for Rs. 85 and sells it to customer at Rs. 100. In this case, advertisement agency shall be charged GST on Rs. 85 @ 5% = Rs. 4.25, and shall also pay GST @ 5% on Rs. 100 = Rs. 5
  3. If the advertisement agency works as agent of newspaper: 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.
  4. Where advertisement agency works as agent, the billing shall be done by newspaper to the customer on Rs. 100 @ 5% and ITC paid to advertisement agency @ 18% on Rs. 15 shall be utilized.
  5. 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.