GST on Advertising Services: Digital, Print, Outdoor & TV (2026)
Updated: 3 June 2026 | CGST Act 2017 | SAC 9983 | Notification 11/2017-CT(Rate) | OIDAR Rules
Most advertising services in India attract 18% GST — this includes digital advertising (Google, Facebook), TV, radio, and outdoor hoardings. Print advertising in newspapers and magazines is taxed at a concessional 12% GST. When buying ads directly from foreign platforms (Google, Meta), registered Indian businesses must pay 18% GST under RCM. ITC is fully claimable on all advertising expenditure.
12% / 18%
Two advertising GST rates: 12% for print media, 18% for all other ad channels
Google/Facebook/outdoor/TV/radio: 18% | Newspaper/magazine ad space: 12% (Notfn. 11/2017)
Google/Facebook/outdoor/TV/radio: 18% | Newspaper/magazine ad space: 12% (Notfn. 11/2017)
GST Rate Comparison — All Advertising Channels
| Advertising Channel | SAC | GST Rate | Mechanism | ITC Available? |
|---|---|---|---|---|
| Google Ads (via Indian agency) | 998361 | 18% | Forward Charge | Yes |
| Google Ads (direct from Google LLC) | 998361 | 18% | RCM on recipient | Yes (post RCM) |
| Facebook / Instagram Ads (via agency) | 998361 | 18% | Forward Charge | Yes |
| Facebook / Meta (direct — OIDAR) | 998361 | 18% | RCM on registered recipient | Yes (post RCM) |
| Newspaper / magazine ad space | 998363 | 12% | Forward Charge | Yes |
| Classified ads (print media) | 998363 | 12% | Forward Charge | Yes |
| TV channel advertising | 998361 | 18% | Forward Charge | Yes |
| Radio advertising | 998361 | 18% | Forward Charge | Yes |
| Outdoor / hoarding / billboard | 998361 | 18% | Forward Charge | Yes |
| Advertising agency commission / fee | 998311 | 18% | Forward Charge | Yes |
| LinkedIn / Twitter Ads (direct) | 998361 | 18% | RCM on registered recipient | Yes (post RCM) |
| Export of ad services to foreign clients | 998361 | 0% (Zero-rated) | Under LUT | ITC refund available |
| Advertising services to SEZ unit | 998361 | 0% (Zero-rated) | Under LUT or IGST refund | Yes |
OIDAR Services and RCM on Foreign Digital Ads — How It Works
Online Information and Database Access or Retrieval (OIDAR) services include all automated, internet-based services where supply is essentially automated — Google Search Ads, display ads, programmatic advertising, and social media ad placements by foreign platforms fall in this category.
For Indian registered businesses buying OIDAR services directly from foreign companies: the recipient must pay 18% GST under RCM. Process: (1) At month-end, tally all direct foreign ad spend (Google Ads dashboard, Meta Ads Manager). (2) Create a self-invoice. (3) Declare liability in GSTR-3B Table 3.1(d). (4) Pay via cash ledger. (5) Claim ITC in Table 4(A)(3). This is a common compliance gap — many businesses pay Google/Meta regularly but never remit the RCM GST, creating audit risk and interest liability.
ITC on Advertising — Full Eligibility Guide
Advertising expenses are fully eligible for ITC as they directly support business-generating activities. There are no specific restrictions in Section 17(5) that block advertising ITC. Claim ITC on: media buying, creative production costs, influencer marketing fees, ad agency commissions, PR retainer fees, and event sponsorship invoices. If your business makes both taxable and exempt supplies, advertising ITC may require proportionate reversal under Rule 42 of the CGST Rules based on the exempt-to-total turnover ratio.
Frequently Asked Questions
What is the GST rate on digital advertising — Google Ads, Facebook Ads, YouTube?
Digital advertising services — including Google Ads (search and display), Facebook and Instagram Ads, YouTube advertising, LinkedIn Ads, Twitter/X Ads, and programmatic advertising — attract 18% GST in India. When an Indian company buys digital ad services from an Indian advertising agency or a domestic intermediary, the agency charges 18% GST on the invoice (forward charge). However, when an Indian business buys ads directly from Google LLC, Meta Platforms (Facebook), or any other foreign digital advertising company, it falls under Online Information and Database Access or Retrieval (OIDAR) services. For OIDAR services received from foreign service providers, the Indian registered business must pay 18% GST under Reverse Charge Mechanism (RCM). The Indian business self-invoices and deposits 18% GST, which it can then claim as ITC. Small businesses (unregistered) receiving OIDAR services from Google/Meta: GST is collected by the foreign platform directly (since 2023 regulations).
What is the GST rate on print advertising — newspapers and magazines?
Print advertising in newspapers, magazines, periodicals, and journals attracts 12% GST — a concessional rate lower than the standard 18% applicable to other advertising media. This 12% rate is specifically provided under Notification No. 11/2017-CT(Rate) for "selling of space for advertisement in print media." Classified advertisements in newspapers — property listings, job ads, matrimonial ads — also attract 12% GST. The newspaper or magazine publisher charges 12% GST on the ad booking invoice. ITC on print advertising: businesses can claim ITC on the 12% GST paid on newspaper/magazine ad expenditure. Note: the rate is on the advertising space, not on the newspaper itself (newspaper supply to readers is exempt). If an ad agency books print space on your behalf and charges a bundled fee, the agency may charge 18% on its agency service fee and pass through 12% on the print space — ensure invoice splitting is done correctly to optimize ITC.
Does RCM apply when paying Google or Facebook for advertising in India?
Yes, Reverse Charge Mechanism (RCM) applies when an Indian GST-registered business purchases advertising services directly from foreign digital companies like Google LLC (Google Ads), Meta Platforms Inc. (Facebook/Instagram Ads), or any other non-resident service provider. This is because foreign companies not having a physical establishment in India cannot register under regular GST — they either register under OIDAR rules or do not register. When a registered Indian business pays foreign ad platforms, it must: (1) self-invoice the transaction, (2) declare the value in GSTR-3B under Table 3.1(d) as RCM liability, (3) pay 18% GST via cash ledger, and (4) claim the paid amount as ITC in the same period. For unregistered individuals and small businesses, since October 2023, Google and Meta are required to collect and pay GST directly under OIDAR supplier registration. Always check whether you received a GSTIN-tagged invoice from a foreign platform or need to self-pay RCM.
What GST applies on outdoor advertising, hoardings, and billboard rentals?
Outdoor advertising — including hoardings, billboards, bus shelters, metro station branding, airport advertising, railway station displays, and transit advertising — attracts 18% GST. This is classified as advertising services (SAC 9983) or services related to display of advertisements (SAC 998361). The outdoor advertising company or media owner (who owns the hoarding site or has the rights) charges 18% GST on space rentals to advertisers. If a municipality or government body leases a public space for hoarding to an advertising company, the advertising company must pay 18% GST under RCM on the lease rentals paid to the government body. The advertiser (brand) pays 18% GST to the outdoor advertising company and can claim full ITC. LED/digital display boards (goods supply): 18% GST on the equipment. Installation and maintenance of digital billboards: 18% GST on services. Glow sign boards made to order: 12% GST (job work on goods).
Can businesses claim ITC on advertising expenses? Any restrictions?
Yes, Input Tax Credit (ITC) on advertising expenses is fully available for businesses under Section 16 of the CGST Act, 2017. Advertising is an eligible input service — it is used in the course or furtherance of business, and it is not among the blocked credits under Section 17(5). Businesses can claim ITC on: digital advertising (Google, Facebook, LinkedIn), TV and radio ad spots, print advertisements, outdoor hoarding costs, advertising agency fees, PR and media buying services, promotional event services, and brand ambassador fees. Conditions: tax invoice in your name with your GSTIN, payment within 180 days, and credit visible in GSTR-2B. Restriction: if advertising is for a product that results in an exempt supply, proportionate ITC reversal is required under Rule 42. Restriction: promotional gifts or free samples distributed as part of advertising campaigns — GST paid on purchase of gifts is eligible ITC, but "supply" of free samples may have GST implications if it qualifies as a supply. Exporting advertising services to foreign clients: zero-rated, full ITC refund available.
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