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Either. If you want the drippings to make gravy, put it in a pan. If you don't care about the drippings, on the grate is fine. A turkey that size will dump about a cup and a half of fat and drippings. You can also put it on the grate with a pan on the level below.
I’ll be doing mine directly on the rack with a pan of chicken broth and seasoning in a pan below it. The drippings, seasoned broth and smoke make for a nice dipping juice for the turkey.
I did one today, right on the grate. It's a matter of personal taste, but I like the extra flavor that comes from the juices dripping nto the heat shield, and enhancing the flavor and color of the turkey.
I make gravy from the neck, giblets and backbone.
I smoke or roast the neck with the turkey, then use the neck and giblets in soup later. I've got enough turkey fat and gelatin drippings from the pan to make 4 quarts of the most incredible gravy. Had a batch tonight over turkey and roasted potatoes, carrots, onions, and garlic. Ended up licking the plate when no one was looking!
I just dropped a 25 pounder right on the rack... spatchcocked. Brined it in a citrus brine for almost 24 hours. It's on the uds right now over a basket of Royal oak and some cherry hunks. Smells good!