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Guide · GST Rates

GST on Advertising Services —
18% or 5%?

The correct GST rate for digital and online ads, print-media space, TV, radio and hoardings — plus how RCM works on Google/Facebook ads and when you can claim ITC.

TaxClue Editorial Desk Updated 18 August 2026 5 min read 16 FAQs answered
Updated for FY 2026-27 GST Expert Reviewed Digital · Print · Media
Quick Answer

Advertising services are taxable at 18% (SAC 998361) — this covers digital/online ads, TV, radio, hoardings and advertising-agency services. The one exception is the sale of space for advertisements in print media (newspapers, periodicals), taxed at a concessional 5%. When a GST-registered business buys ads directly from a foreign platform such as Google or Meta, it is an import of service — the recipient self-pays 18% under Reverse Charge (RCM). ITC is generally available on advertising spend.

Digital / online ads 18%
Print-media space 5%
Ad agency service 18%
Google / Meta (RCM) 18%
At a glance

GST on Advertising — Decision Table

The GST rate for every common advertising channel and service in India, with the charge mechanism and ITC position.

Advertising SupplyGST RateMechanismITC
Digital / online ads via Indian agency18%Forward chargeYes
Google / Meta ads bought directly (foreign)18%RCM (import of service)Yes
Sale of space in print media (newspaper / magazine)5%Forward chargeYes
Classified ads in newspapers5%Forward chargeYes
TV channel advertising18%Forward chargeYes
Radio advertising18%Forward chargeYes
Outdoor · hoardings · billboards18%Forward chargeYes
Advertising agency commission / fee18%Forward chargeYes
Export of ad services to a foreign clientZero-ratedUnder LUT / refundYes*

* Zero-rated exports carry no output GST but allow full ITC refund. SAC 998361 (advertising services) / 998363 (sale of space in print media). Advertising rates were not changed by the GST 2.0 rationalisation effective 22 September 2025. Confirm on the official GST portal before invoicing.

Channel by channel

GST Rate by Advertising Medium

Almost every advertising medium sits at the standard 18% under SAC 998361. Only the sale of advertising space in print media enjoys the concessional 5%.

  • Digital & online ads — 18%. Google Ads (search & display), Facebook, Instagram, YouTube, LinkedIn, X (Twitter) and programmatic ads.
  • Sale of space in print media — 5%. Newspapers, magazines, periodicals and journals, including classified listings.
  • Television & radio — 18%. Sale of ad slots / airtime on TV channels and radio stations.
  • Outdoor & transit — 18%. Hoardings, billboards, bus shelters, metro and airport branding.
  • Advertising agency services — 18%. Creative, media buying, agency commission and campaign management.
TaxClue Insight

Where an agency books print space for you and adds its own service fee, invoice splitting matters: the print space carries 5% while the agency fee carries 18%. A single bundled 18% invoice overcharges you on the print portion — ask the agency to show the two lines separately.

Not sure which rate your advertising invoice should carry?

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The core question

One line splits the advertising rate: whether you are buying space in a printed newspaper or periodical (5%) or any other advertising service (18%).

5%

Sale of space in print media

  • Newspaper & magazine ad space
  • Classified listings in print
  • Periodicals & journals
  • SAC 998363
  • Full ITC available to the advertiser
vs
18%

All other advertising services

  • Digital / online ads (Google, Meta, YouTube)
  • TV, radio & airtime
  • Hoardings & outdoor branding
  • Advertising-agency services
  • SAC 998361 · full ITC available
Print rate is for space, not the newspaper

The 5% applies to selling advertisement space in print media — not to the newspaper sold to readers (that supply is exempt). Digital editions and websites of the same newspaper are treated as online advertising at 18%, so an e-paper banner is not 5%.

Booking print and digital campaigns together? Get the split right.

Talk to a GST Expert →
High-intent · Google / Meta

RCM on Ads Bought from Google & Meta

When a GST-registered Indian business pays a foreign platform — Google LLC, Meta, LinkedIn, X — directly for advertising, it is an import of service. The recipient must self-pay 18% GST under Reverse Charge (RCM), then claim it back as ITC in the same period.

You pay the platformGoogle Ads / Meta Ads spend
→
Self-invoiceRaise an RCM self-invoice at month-end
→
Pay 18% RCMDeclare in GSTR-3B Table 3.1(d)
→
Claim ITCRecover the same 18% as credit
  • RCM applies to the registered recipient — you pay the tax, Google/Meta do not add Indian GST on the invoice for a B2B (GSTIN) account.
  • The 18% RCM you pay is generally claimable as ITC, so for most businesses it is cash-flow neutral, not an added cost.
  • Reconcile foreign ad spend from your Google Ads & Meta dashboards every month — missed RCM is a common audit gap that attracts interest.
Common compliance gap

Many businesses pay Google/Meta every month but never remit the RCM GST. The liability is self-assessed — the platform will not remind you. Un-discharged RCM surfaces in audit with 18% tax plus interest, even though the credit would otherwise have been available.

Running Google/Meta ads? Get your monthly RCM & ITC handled.

Get RCM Help →
Credit rules

ITC on Advertising — When Can You Claim It?

Advertising is used in the course or furtherance of business and is not a blocked credit under Section 17(5), so Input Tax Credit is generally fully available on advertising spend — provided you hold a valid tax invoice in your name, it reflects in your GSTR-2B, and payment is made within 180 days.

Advertising spendITC?Note
Digital ads (Google, Meta, LinkedIn)YesEligible; RCM-paid GST also creditable
Print, TV, radio & outdoor adsYesStandard input service
Advertising agency / media-buying feesYesBusiness input service
Ads for an exempt product / supplyReversalProportionate reversal under Rule 42
Free samples / gifts in a campaignRestrictedGifts / free supply — Section 17(5)(h)

Businesses making both taxable and exempt supplies must reverse advertising ITC proportionately under Rule 42. Exports of advertising services are zero-rated with full ITC refund.

Government sourcesRates & notifications: gst.gov.in · CBIC rate finder: cbic-gst.gov.in · Rate schedule: Notification 11/2017-CT(R) — advertising services & sale of print-media space · Blocked credits: Section 17(5), CGST Act 2017
People also ask

Frequently Asked Questions

Rates & Slabs
What is the GST rate on advertising?
Advertising services are taxable at 18% GST in India under SAC 998361 — this covers digital and online ads, television, radio, hoardings and advertising-agency services. The only exception is the sale of space for advertisements in print media (newspapers, magazines, periodicals), which is taxed at a concessional 5%. These rates were retained under the GST 2.0 reform effective 22 September 2025.
Is advertising 18% or 5% GST?
It depends on the medium. Almost all advertising is 18% — digital/online ads, TV, radio, hoardings and agency services. Only the sale of advertising space in print media (newspapers and periodicals) is 5%. So a newspaper ad booking is 5%, while a Google or Facebook ad, a TV spot or a hoarding is 18%.
What is the SAC code for advertising services?
Advertising services fall under SAC heading 9983. The display and sale of advertising space or time in most media (digital, TV, radio, outdoor) is SAC 998361 at 18%. The sale of advertising space in print media is SAC 998363 at the concessional 5% rate.
What is the GST rate on advertising agency commission?
Advertising agency services — creative work, media buying and agency commission — attract 18% GST. This is the agency's own service fee. Where the agency also books print space for you, that print portion can be billed at 5%, so the agency fee (18%) and the print space (5%) should be shown as separate invoice lines.
Digital & Online Ads
Is GST applicable on Google Ads and Facebook Ads?
Yes. Digital advertising on Google Ads, Facebook and Instagram, YouTube, LinkedIn and similar platforms attracts 18% GST. If you buy through an Indian agency, the agency charges 18% on its invoice. If you buy directly from the foreign platform (Google LLC, Meta), it is an import of service and you, the GST-registered recipient, self-pay 18% under Reverse Charge (RCM) and then claim it as ITC.
What is the GST rate on YouTube and social media advertising?
Advertising on YouTube, Instagram, Facebook, LinkedIn and X (Twitter) is taxed at 18% as an advertising/online service. When bought directly from the foreign platform by a registered business, the 18% is discharged under RCM by the recipient; when routed through an Indian agency it is charged on the agency's forward-charge invoice.
Is GST charged on influencer marketing and sponsored posts?
Yes. Payments to influencers or content creators for sponsored posts and brand promotion are a supply of service taxed at 18% GST, where the influencer is registered (turnover above the threshold). The paying business can generally claim this 18% as ITC as a business input service.
Print & Outdoor
What is the GST rate on newspaper advertisement?
A newspaper (or magazine/periodical) advertisement is the sale of space in print media, taxed at a concessional 5% GST under SAC 998363. This 5% applies to display ads and classified listings alike. The rate is on the advertising space — the newspaper sold to readers is a separate exempt supply. The advertiser can claim the 5% as ITC.
What is the GST rate on hoardings and outdoor advertising?
Outdoor advertising — hoardings, billboards, bus shelters, transit media, metro and airport branding — attracts 18% GST as advertising services under SAC 998361. The media owner charges 18% on the space rental and the advertiser can claim full ITC. Where a hoarding site is leased from a government body, the advertising company may have to pay RCM on that lease.
Is print advertising cheaper on GST than digital?
On the tax rate, yes — sale of space in print media is 5% versus 18% for digital, TV, radio and outdoor advertising. But since ITC is generally available on all of them for a registered business, the 18% on digital is usually recoverable, so the effective cost difference is smaller than the headline rates suggest.
RCM on Foreign Ads
Does RCM apply when paying Google or Meta for advertising?
Yes. When a GST-registered Indian business buys advertising directly from a foreign platform such as Google LLC or Meta, it is an import of service and the recipient must pay 18% GST under Reverse Charge (RCM). You raise a self-invoice, declare the liability in GSTR-3B Table 3.1(d), pay via the cash ledger, and claim the same amount back as ITC in the same period.
Who pays GST on foreign digital advertising?
For a GST-registered business, the recipient pays — you self-assess and deposit 18% under RCM on ads bought directly from foreign platforms, because a non-resident supplier without an Indian establishment does not charge Indian GST on a B2B (GSTIN) invoice. The RCM you pay is generally recoverable as ITC.
ITC & Compliance
Can I claim ITC on advertising expenses?
Yes. Advertising is used in the course or furtherance of business and is not a blocked credit under Section 17(5), so ITC is generally fully available — on digital, print, TV, radio, outdoor and agency spend — provided you hold a valid tax invoice in your name, it appears in your GSTR-2B, and payment is made within 180 days. RCM GST paid on foreign ads is equally creditable.
Are there any restrictions on advertising ITC?
A few. If advertising relates to an exempt supply, ITC must be reversed proportionately under Rule 42. GST on free samples or gifts distributed in a campaign is restricted under Section 17(5)(h). And a business making both taxable and exempt supplies apportions advertising ITC by the exempt-to-total turnover ratio. Otherwise, advertising ITC is freely available.
Is GST charged on export of advertising services?
Export of advertising services to a foreign client generally qualifies as a zero-rated supply. No output GST is charged (supply under LUT, or pay IGST and claim a refund), and the exporter can claim a full refund of the input GST used to provide the service, provided the place-of-supply and payment-in-forex conditions for export of service are met.
Did GST 2.0 change the rates on advertising?
No. The GST 2.0 rationalisation effective 22 September 2025 restructured many goods and services rates but did not change advertising. Advertising services remain at 18% (SAC 998361), sale of space in print media stays at the concessional 5%, and the RCM position on ads bought from foreign platforms is unchanged.
If you would rather not do it yourself

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