Guide
GST and TDS on outdoor advertising in India
· Updated
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This guide describes common practice. Tax rules change and depend on your facts — confirm rates, thresholds and sections with your chartered accountant before you rely on them.
The invoice
Most outdoor media invoices bill some mix of four things:
- Display — the rent for showing the ad on the site for the period.
- Printing — the flex or vinyl.
- Mounting — fixing it on the site.
- Removal — taking it down at the end.
The sale of outdoor advertising space is generally classified under SAC 998366 (sale of other advertising space or time, excluding on commission). You will also see 998361 and 998362 cited — they cover different supplies:
| What you are billing | SAC usually used |
|---|---|
| Your own or leased sites, sold outright to a client or agency | 998366 |
| Buying and selling space on commission, as an agent | 998362 |
| Creative, planning and other advertising services | 998361 |
| Printing and mounting billed as separate lines | Confirm with your accountant |
Outdoor advertising space is generally taxed at 18% GST. Check with your accountant whether printing and mounting billed on the same invoice should follow the same classification in your case.
IGST or CGST and SGST
Which tax you charge depends on the place of supply. For most business clients it is the client’s registered location:
| Your registered state vs the place of supply | Tax on the invoice |
|---|---|
| Same state | CGST + SGST (9% + 9% on an 18% rate) |
| Different states | IGST (18%) |
The invoice should carry your GSTIN, the client’s GSTIN, the place of supply and the SAC.
Reporting in GSTR-1
Every tax invoice you issue is an outward supply and is reported in GSTR-1 for the period. Keeping invoices, credit notes and the client’s GSTIN correct at the time of billing is what makes GSTR-1 a quick export instead of a monthly clean-up.
TDS deducted by your clients
Many clients deduct TDS when they pay an advertising invoice. Payments under advertising contracts are generally covered by the contractor-payment TDS provisions — section 393 of the Income-tax Act, 2025 from 1 April 2026 (section 194C under the 1961 Act) — at rates that depend on whether the payee is an individual or HUF or another entity. You receive the payment net of TDS and claim the TDS against your own tax.
In practice this means every payment has three numbers — gross, TDS and net — and the TDS stays open until the client files its return and the amount appears in your tax credit statement. Tracking it per invoice is what stops it from being forgotten.
TDS you deduct on site rent
If you lease sites, the rent you pay landlords for land or buildings may require you to deduct TDS, under the rent provisions of section 393 of the Income-tax Act, 2025 (section 194-I under the 1961 Act), once payments cross the threshold in force for the year. Your accountant will also tell you how GST applies to the rent you pay.