--- title: "New GST on Digital Marketing Services 2026: 18% Rate on Digital" description: "New GST rate on digital marketing services in 2026 is 18% on SEO, PPC and social media ads. Let Busy handle GST billing accurately on every transaction." canonical: "https://busy.in/gst-rates/digital-marketing-services/" author: "Nitin Bansal" published: "2025-07-21T10:40:32.000Z" category: "GST Rates" --- - **GST on digital marketing services** is generally **18%** in India. - Businesses may claim eligible **Input Tax Credit (ITC)** on digital marketing and advertising expenses used for business purposes, subject to normal GST conditions. - Freelancers and digital marketing service providers generally need GST registration when aggregate turnover exceeds **₹20 lakh**, subject to the applicable threshold and registration provisions. - Advertising services are commonly classified under **SAC 998361**, while other digital marketing activities may fall under different SAC codes depending on the nature of the service. - Services purchased from a foreign supplier may attract **IGST under Reverse Charge Mechanism (RCM)** when they qualify as an import of services. # New GST on Digital Marketing Services: Tax Rates & Input Credit Explained With businesses rapidly shifting to online platforms, digital marketing services have become essential for brand visibility and growth. Whether it’s social media advertising, SEO, influencer marketing, or email campaigns, these services fall under the [**GST**](https://busy.in/gst/) regime in India. In this blog, we’ll explain the GST on digital marketing services, applicable tax rates, [**SAC codes**](https://busy.in/sac-codes/) , and how businesses can claim [**Input Tax Credit (ITC)**](https://busy.in/gst/input-tax-credit/) on such services. ## **New GST Rate on Digital Marketing Services in India** There was no separate **new GST rate for digital marketing services** introduced from 22 September 2025. **GST on digital marketing services** generally remains **18%**, subject to the nature and classification of the service. | Type of Digital Marketing Service | GST Rate | Rate Before 22 Sep 2025 | | --- | --- | --- | | SEO, SEM, SMM, Content Marketing | **18%** | **18%** | | Paid Advertising (Google, Meta, etc.) | **18%** | **18%** | | Influencer Marketing | **18%** | **18%** | | Email and WhatsApp Marketing | **18%** | **18%** | | Web Analytics, Branding Services | **18%** | **18%** | ## Are Digital Marketing Services Taxable Under GST? Yes. As per GST law, digital marketing is a taxable service. It includes a wide range of online promotional activities and is categorized under professional or business support services. Whether you’re hiring an agency or a freelancer, the **GST for digital marketing services** is applicable if the service provider is registered under GST. ## SAC Code for Digital Marketing Services | Service | SAC Code | GST Rate | | --- | --- | --- | | Digital Marketing (All categories) | 998361 | 18% | | Online Ad Campaigns | 998365 | 18% | Refer to correct [**SAC code list**](https://busy.in/sac-codes/) for proper GST billing and ITC filing. Live Demo Available Today ## Check Campaign Billing Status from Your Mobile Anywhere Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## GST Compliance for Digital Marketing Agencies and Freelancers **Agencies:** - Must issue GST-compliant invoices - Collect 18% GST from clients - File monthly/quarterly GST returns - Claim ITC on input services like ad spend, tools, software, etc. **Freelancers:** - Must register under GST if turnover exceeds ₹20 lakh (₹10 lakh in special category states) - Collect and pay GST if registered - Eligible to claim ITC on business-related expenses Explore related options under [**GST Composition Scheme**](https://busy.in/gst/gst-composition-scheme/) if you’re a small service provider. ## Input Tax Credit (ITC) on Digital Marketing Businesses that use digital marketing services to promote their products or services can claim ITC on the GST paid, provided: - The service is used for business purposes - You have a valid GST invoice with SAC and GSTIN - Your supplier has filed their GST returns properly Common ITC claims include: - Payments to digital marketing agencies - Subscriptions to SEO or analytics tools - Platform charges (Google Ads, Facebook Ads) Know more at [**ITC eligible expenses under GST**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) . ## Place of Supply and Reverse Charge Implications If digital marketing services are availed from an overseas agency (e.g., a US-based freelancer), GST is payable under [**Reverse Charge Mechanism (RCM)**](https://busy.in/gst/all-about-reverse-charge-mechanism-rcm-under-gst/) by the recipient in India. This ensures GST revenue is collected even when the supplier is not located in India. ## Conclusion The GST on digital marketing services is uniformly set at 18%, making it easy for businesses and service providers to calculate taxes. Whether you’re outsourcing to an agency or running in-house campaigns, proper GST compliance ensures you can claim ITC and reduce your net tax burden. As digital marketing continues to grow, staying updated with [**SAC codes**](https://busy.in/sac-codes/) , billing norms, and [**reverse charge rules**](https://busy.in/gst/all-about-reverse-charge-mechanism-rcm-under-gst/) is crucial for smooth operations and cost efficiency. ## About the author **Nitin Bansal** I am a Fellow Chartered Accountant (FCA) and LLB graduate with 10 years of experience in corporate auditing, taxation, and financial consulting. My expertise includes corporate audits, income tax planning, HSN code classification, and GST rate advisory. Through my blogs and articles, I aim to simplify corporate taxation, auditing, and GST compliance, making financial matters more accessible for professionals and business owners. ## Frequently asked questions ### What is the GST on digital marketing services? The GST is **18%**, applicable to all types of digital marketing services. ### Do freelancers offering digital marketing need to register for GST? Yes, if their annual turnover exceeds the GST threshold of ₹20 lakh. ### Can a company claim ITC on digital marketing expenses? Yes, if the expenses are for business use and proper GST invoices are maintained. ### What is the SAC code for digital marketing? The SAC code is **998361**, under market research and advertising services. ### Is GST applicable on Facebook or Google Ads? Yes, 18% GST is applicable, and in case of foreign billing, it is paid under **RCM**. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/) - [New GST on Medical Equipment: Current Rates, Exemptions & Healthcare Impact](https://busy.in/gst-rates/medical-equipment/)