18% GST on supply of artwork along with space for advertisement: AAR

Case Details: Authority for Advance Rulings, Telangana Time Education Kolkata (P.) Ltd., In re - [2022] 135 taxmann.com 373 (AAR- TELANGANA)

Judiciary and Counsel Details

• • B. Raghu Kiran and S.V. Kasi Visweswara Rao, Member

Facts of the Case

The applicant was engaged in business of purchase and supply of space for advertisement to prospective customers. In course of supply of space for advertisement, it was also supplying art work to adorn space. It filed an application for advance ruling to determine classification and taxability of sale of space for advertisement when it is supplied along with the artwork.

AAR Held

The Authority for Advance Ruling observed that Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017 makes a clear distinction between sale of mere advertisement space and other advertisement space. In the instant case, the applicant was supplying two different supplies and therefore, the question of deducing a composite supply from combination of drafting a design and incorporating a space would not arise. Thus, it was held that services supplied by applicant would fall under other advertisement space having SAC 998366 and GST would be leviable at rate of 18%.