Professional services

GST invoice format for an advertising agency

An advertising agency's invoice should split creative and planning fees from media it buys. Advertising services are SAC 998361 at 18%. Selling space in print media is taxed at 5% under the rate notification, while television, radio, outdoor and online space are taxed at 18%. Show the release order number, publication or channel, insertion dates and sizes for each media line, and state whether the agency acts on commission (998362) or buys and resells space in its own name, because the taxable value differs.

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Sample advertising agency invoice

Description	HSN/SAC	Qty	Rate (₹)	Taxable (₹)	GST
Campaign concept, creative development and artwork, festive launch	998361	1 OTH	1,50,000.00	1,50,000.00	18%
Print media space, Marathi daily, Pune edition, 8 x 12 cm, 3 insertions	998363	3 OTH	40,000.00	1,20,000.00	5%
Radio advertising time, FM station, 20-second spots	998364	60 NOS	1,800.00	1,08,000.00	18%
Outdoor hoarding display, 20 x 10 ft, 30 days	998366	1 OTH	85,000.00	85,000.00	18%
Video ad production, 30-second film	998361	1 OTH	2,20,000.00	2,20,000.00	18%
Taxable value				₹6,83,000.00
GST (CGST + SGST, or IGST if inter-state)				₹1,07,340.00
Invoice total				₹7,90,340.00

Sample prices are illustrative. Check the GST rate for your exact item or service before billing.

Extra fields a advertising agency invoice needs

Release order number: Publishers and broadcasters bill against release orders. Quoting the RO number on the client invoice links each media line to the publisher's own bill and proof of publication.
Publication, edition and date: For print, list the newspaper, edition, page position, size in column-centimetres and insertion date. Clients verify these with tear sheets before paying.
Spot schedule for TV and radio: Channel, programme, time band, spot duration and number of spots explain broadcast charges and match the telecast certificate.
Outdoor site details: For hoardings, show the location, size in square feet and display period, so the client can match them with site photographs.
Agency commission basis: If the agency earns a commission from the media owner or a fee from the client, stating it clearly supports the choice between commission billing and resale.
Creative deliverables: List campaign concepts, artworks, adaptations and production items separately from media so creative fees can be approved independently.

Standard GST invoice fields

Rule 46 of the CGST Rules applies to every tax invoice, including this one:

Supplier name, address and GSTIN
Consecutive invoice number (max 16 characters, unique for the year)
Date of issue
Customer name, address and GSTIN (if registered)
Place of supply with state name
HSN/SAC code per item
Description, quantity and unit
Taxable value after discounts
GST rate and CGST + SGST or IGST amounts
Signature or digital signature

GST rules that matter for a advertising agency

Print space at 5%, everything else at 18%

The services rate notification carries a specific entry for selling of space for advertisement in print media at 5%, separate from other professional, technical and business services at 18%. The SAC list codes this as 998363, sale of advertising space in print media except on commission. Television and radio time (998364), internet space (998365) and other space such as outdoor (998366) are not covered by that entry and are taxed at 18%. An agency buying space in a newspaper and reselling it to a client can therefore bill that line at 5%, but only for the space, not for the creative or production work around it.

Commission model versus resale

Where the agency acts as the client's agent to buy space and earns a commission from the media owner, the agency's supply is the commission, SAC 998362, at 18%, and the media owner bills the client or the agency as agent. Where the agency buys space in its own name and sells it on, it supplies the space itself and charges the applicable rate on the full value. Contracts and release orders should make the model clear, because mixing them leads to tax charged on the wrong base.

Production costs

Shooting a film or printing brochures for a campaign involves vendors whose costs the agency recharges. When the agency contracts them, the recharge is part of its taxable supply under 998361 at 18%, with input credit on the vendor bills. Printed brochures supplied as goods follow their own rate if the agency sells them as goods rather than as part of an advertising service, so check the contract wording.

Government advertising and DAVP rates

Agencies working with government departments often use rates fixed by the central or state advertising bureau. GST applies on these rates as usual, and government clients may deduct 2% GST TDS on contracts above ₹2.5 lakh. Keep the bureau's rate card reference on the invoice.

E-invoicing

Agencies with aggregate turnover above ₹5 crore must report B2B invoices to the Invoice Registration Portal. Because media billing involves large values, many mid-sized agencies cross this limit early, and invoices issued without an IRN are not valid tax invoices for the client's credit claim.

Common billing mistakes

Charging 5% on the creative fee because it sits on the same invoice as print space.
Charging 5% on TV, radio or outdoor space, which do not fall under the print media entry and attract 18%.
Mixing commission and resale models in one campaign, so tax is charged on commission for some lines and full value for others without a contract basis.
Billing media without release order numbers, so the client cannot match lines to the publisher's proof of publication.

Advertising Agency GST invoice: FAQ

What is the GST rate for advertising agency services?

Creative, planning and advertising services under SAC 998361 attract 18% GST.

What GST applies on newspaper advertisement space?

Sale of space for advertisement in print media is taxed at 5%.

Is GST on TV advertising different?

Yes. Sale of television and radio advertising time is taxed at 18%, not 5%.

How should an agency bill on commission?

If you act as the client's agent, bill only your commission under SAC 998362 at 18%, and let the media owner bill the space.

Do I need tear sheets with the invoice?

GST does not require them, but most clients will not pay a print media line without proof of publication.

Can one invoice carry both 5% and 18% lines?

Yes. A campaign invoice can show print space at 5% and creative, production and broadcast lines at 18%, as long as each line carries its own SAC, rate and tax amount and the totals are worked out rate by rate.

Sources: PIB — Recommendations of the 56th GST Council (Annexure III, services rate changes) · GSTN — Official HSN/SAC master list (SAC_MSTR sheet) · GST Council — Notification 11/2017-CT(Rate), services rates (consolidated)

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