ITC on paper for newsprint

Yes you can

Advertisements play a very important role in the success of every business. It is estimated that Advertising expenditure for the Calendar Year 2018 would be approximately 0.45% of the Indian GDP.

Irrelevant in the discussion

Some people are saying ITC cannot be claimed as per Rule 42. I am confused.

PRINTED NEWSPAPER SALE IS EXEMPT BUT ADVERTISEMENTS PUBLISHED ARE TAXABLE UNDER GST. YOU ARE CLAIMING THE ITC OF PAPER, INK, PLATES ETC. AGAINST OUTPUT TAX OF ADVERTISEMENTS PUBLISHED.

Where common taxable inputs and/or services are used for making both taxable and non-taxable/ exempt supplies then the quantum of credit on such inputs/input services is restricted to the credit attributable to taxable supplies.  In other words the total credit will be subject to pro-rata reversals i.e. reversal in proportion to value of non-taxable/exempt supplies. (see Rule 42 of the CGST Rules, 2017 for computation of credit in this case).