GST on advertisement agency commission

Hello,

I would like to know about GST chargeability and taxability on “Advertisement Agency Commision” Income. I would like to ask my query with the help of this example:

 

Scenario 1:

 

Mr. A is a newspaper advertisement commission agent (unregistered under GST Act)

Mr. X gave an advertisement in a local newspaper through Mr. A for Rs. 10,000/-

Now, Newspaper company will raise bill in name of Mr. A, of Rs. 9,450/- as under:

Rs. 9,000/- Advertisement charge (net of commission of Rs. 1,000/-)

Rs.450/- as GST @ 5%

 

Now there following questions / querries:

Whether Mr. A (unregistered supplier) can collect GST of Rs. 450/- charged by the Newspaper Company through his own bill raised in the name of the client Mr. X?

If Yes, then can he mention it as “Reimbursement of GST Paid” or anything like that?

If No, then how can he pass the GST charged by Newspaper Company on the advertisement of his client Mr.X?

 

Kindly provide advice on the above as in above scenario, Mr.A will have to bear the burden of GST of Rs.450/- in spite advertisement service is provided by Newspaper Company to Mr. X (client)

 

Scenario 2:

 

Alternatively, if Mr. A gets himself registered under voluntary registration under GST Act, then the case will be as under:

Newspaper company will raise bill in name of Mr. A, of Rs. 9,450/- as under:

Rs. 9,000/- Advertisement charge (net of commission of Rs. 1,000/-)

Rs.450/- as GST @ 5%

 

Mr. A will raise bill of Rs. 10,500/- as under:

Rs. 10,000/- Advertisement charge (including commission of Rs. 1,000/-)

Rs.500/- as GST @ 5%

 

Now, in this case Mr. A will charge GST of Rs. 500/- from Mr. X and pay Rs. 450/- to Newspaper Company. Now what will be the treatment of Rs. 50/- (500-450) ? Will it have to be deposited with Government as excess GST ?