GST rate for small Advertising Agency?

You can do charge 5% and 18% if 2 separate bills are made.  If single bill is made 18% tax rate would be applicable on mixed supply. 

You can choose to do as it suits you.

Regards

www.gstsamadhaan.com

GST Samadhaan - Helping SMEs with GST

Hi Please let me know as an advertisng agency, what is the rate structure for gst to be charged on the clients? 

GST Rate for Artwork charges from ad agency?

The old "15% commission / 85% media" approach changed under GST:

• Sale of advertising space in print media (newspapers, magazines): exempt (Notf 12/2017-CT(R), entry for "services by way of sale of space for advertisement in print media").

• If the agency acts as a principal (buys space and resells it to the client), the resale is a supply of advertising service at 18%. The print-media exemption applies only to the publisher's direct sale of space. Many agencies therefore bill as pure agent for media cost (Rule 33 conditions: contract, separate disclosure, actual reimbursement) and charge 18% on their commission or service fee only.

• Space or time in other media (TV, radio, outdoor, digital) is taxable at 18%.

• Practical structure for a small agency: two lines on the invoice. "Print media space, as pure agent, at actual" (no GST, supported by the publisher's invoice in the client's name) and "Agency commission / creative" at 18%.

• Registration threshold Rs 20 lakh on the agency's own turnover. Pure-agent reimbursements are excluded from value (Rule 33).