Digital Advertising Services Under SAC Code 998361
Digital Advertising Services help brands reach customers through online channels such as social media, search, display and video platforms. Businesses use these services to increase visibility, generate leads and build stronger digital presence.
SAC 998361 is used when the main work relates to professional advertising services for brand promotion and campaigns It is meant for professional assignments where the service provider brings specialised skills, tools and experience to support the client’s objectives.
In practical terms, engagements under this SAC often include areas like advertising agency services, marketing and advertising solutions. Using SAC 998361 for such jobs keeps the description of the service and its GST treatment aligned with the agreed scope.
Digital Advertising Services GST Rate for SAC Code 998361
From a GST perspective, digital advertising services fall under supply of services. The taxable value covers professional fees for advisory work, planning, analysis, execution support and management of campaigns billed under the same contract.
After the September 2025 GST revision, most advertising, media and marketing related services that are not specifically exempt continue to fall under the standard 18% slab. Registered businesses can usually claim input tax credit when such services are used for promoting taxable supplies, subject to normal ITC conditions.
The table below sets out the current standard GST rate for SAC code 998361.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998361 | Advertising Services | 18% with ITC | 18% with ITC | Covers general ad-creation, media planning, creative services etc. Sectoral notes and SAC tables show 18% as standard. Under GST 2.0 the generic advertising service remains at 18%. |
In practice, agencies and service providers offering digital advertising services should apply 18% GST on the taxable value, mention SAC 998361 on invoices and keep this code stable in their GST records so that advertising revenue is easy to track.
Explore Other SAC Codes Under 9983
SAC 998361 falls under heading 9983, which groups specialised veterinary, advertising, media and related professional services used by businesses and institutions.
These are the main related six-digit SAC codes under 9983.
For the 9983 group, digital advertising services will normally map to SAC 998361, while other codes in the heading should be used when the engagement clearly matches their own description.
Conclusion
This code is intended for digital advertising services where specialised skills are used to run campaigns or manage media and promotions for a fee. The code is generally taxed at 18% under GST, and using it with the correct rate in % helps businesses keep their advertising and media spend clearly mapped in tax records.
Important Disclaimer
The entire content on this page has been arranged to the best of the author's understanding and is subject to periodic updates as per the law for the time being in force. The above does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions cannot be ruled out. BUSY Infotech Private Ltd. and its associates will not be held responsible for any loss or damage arising from any inaccurate or incomplete information in this document. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.
Frequently Asked Questions
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What is SAC code 998361 in GST for digital advertising services?
SAC 998361 covers full service advertising including creative work, campaign planning, media strategy, digital marketing execution and related agency services. It applies to both online and offline campaigns when the agency is providing end to end advertising solutions to clients.
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Does SAC 998361 cover online ad creation, campaign management and agency services?
Yes, creative development, social media management, search advertising optimisation, display campaign handling and performance reporting all fall under 998361 when billed as advertising services. It focuses on the service value, not on sale of specific media space on commission.
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What GST rate applies to digital advertising under SAC 998361?
Advertising services under SAC 998361 are generally taxed at 18% GST. This standard rate applies whether the campaign is on digital platforms, outdoor media or a mix, unless a special notification provides a different treatment for a particular type of advertisement.
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Should agencies use SAC 998361 when billing for end-to-end digital campaigns?
Yes, if the scope includes ideation, creatives, campaign execution, optimisation and reporting, agencies should normally classify the supply under 998361. If they only buy and resell ad space on commission, the more specific media buying SAC codes like 998362 to 998366 may apply.
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Can businesses claim ITC on GST paid for SAC 998361 services used for promotion?
Businesses can usually claim ITC on GST charged for advertising services when campaigns are for promoting taxable supplies. ITC may be restricted where the business makes exempt supplies, claims certain special benefits or uses the services primarily for personal, non business purposes.