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SAC codes

SAC code for digital marketing: 998361

An agency's fee for planning and running campaigns is an advertising service; the ad space it buys and resells is a different line.

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In short

Digital marketing retainers, SEO and social media management usually go under SAC 998361, advertising services, at 18% under forward charge. SimpleERP keeps the fee and any resold ad spend on separate lines with their own codes.

Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.

The data

SAC 998361 at a glance

ItemValue
6-digit SAC998361 (998365 for resold internet ad space)
4-digit group9983: other professional, technical and business services
Chapter 99 headingAdvertising services
Usual GST rate18% (as notified; check the GST portal)
Reverse chargeForward charge for most suppliers: the agency charges GST
ExemptionNo general exemption; a campaign for a client outside India can be a zero-rated export
Who typically bills itDigital agencies, SEO consultants, social media managers and freelance performance marketers
Codes from the CBIC services classification; rates as notified on the verified date. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.

Sources: CBIC: classification of services (SAC), CBIC: GST rates and notifications. Verified .

Which SAC code goes on a digital marketing invoice?

Use 998361, advertising services. It sits in group 9983, other professional, technical and business services, under chapter 99 (services). Campaign planning, creatives, SEO, social media management and performance marketing retainers fit here. When you buy online ad space and resell it to the client, that part goes under 998365, sale of internet advertising space or time.

Brightloop Digital in Kochi, Kerala, running search ads and a social media calendar for Lakshmi Steel Furnitures in Coimbatore, bills its monthly fee under 998361 and the ad spend it passes on as a separate line.

What GST rate applies to digital marketing?

Digital marketing fees are usually taxed at 18%. A ₹60,000 monthly retainer for a client in another state carries ₹10,800 IGST. Ad spend you resell is usually taxed too; spend paid on the client's behalf as a pure agent may be left out of your taxable value when the conditions are met. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.

  • Retainer, project fee and performance bonus all take the same code
  • Resold ad space can sit under 998365 on its own line
  • Ads billed straight to the client's own ad account stay off your invoice
  • Market research and surveys have their own code in the 99837 family

A digital marketing invoice line in SimpleERP

Save Monthly retainer and Ad spend recharge as two services, each with its SAC code and rate. Every month's invoice is then two lines, and the customer's GSTIN decides the tax split.

  • SAC 998361 prints on the retainer line
  • Place of supply picks CGST plus SGST or IGST from the customer's state
  • The HSN/SAC summary for GSTR-1 shows fee and ad spend apart
  • Receivables ageing shows which clients are behind on retainers

Illustration of the keyboard-first invoice editor with a focused line, live tax totals and shortcut hints.

A monthly SEO and social media retainer under SAC 998361.

When is reverse charge or an exemption involved?

Agency fees are under forward charge. Two questions come up. Export: a campaign for a client outside India, paid in foreign exchange, can be zero-rated. Pure agent: when you pay platform charges in the client's name and recover the exact amount, shown separately, it may be excluded from your value. Your own purchase of ads from a platform abroad is a matter for your accountant, which SimpleERP handles with a journal entry because bills have no reverse charge flag.

  • Forward charge on the agency's fee
  • Client abroad: zero-rated under a letter of undertaking
  • Pure agent recharges: shown separately, at cost
  • Brand campaigns in print and outdoor: see advertising services

Sources

FAQ

Questions, answered

I charge a fee plus the client's ad budget. Is GST due on the ad budget too?

If you buy the ads in your name and resell them, the ad spend is part of your supply and taxable, often under 998365. If the client's own ad account pays the platform directly, it never reaches your invoice. The pure agent route sits in between and has strict conditions, so check with your CA.

Is SEO a different SAC from social media management?

Both are commonly billed under 998361 as advertising services. Some firms bill SEO audits as IT or consulting work; pick the description that fits your contract and keep it consistent across invoices so your HSN/SAC summary reads cleanly.

I am a freelancer earning ₹12 lakh a year. Do I charge GST?

Not until your turnover crosses the registration threshold for services in your state, unless you register voluntarily or sell to clients in other states in a way that needs registration. Once registered, you charge GST on every taxable invoice.

Can one invoice show the retainer and a one-time website fix?

Yes. The retainer goes under 998361 and the website work under 998314. Each line carries its own code and rate, and the invoice totals and tax split work out together.

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