Internet Advertising Services Under SAC Code 998365
Internet Advertising allow advertisers to reach users on websites, apps, search engines and social platforms. These services support lead generation, performance marketing and brand visibility in the digital space.
SAC 998365 is used when the main work relates to sale of internet advertising space for digital marketing campaigns It is meant for professional assignments where the service provider brings media, research or campaign expertise to help the client reach clear objectives.
In practical terms, projects under this SAC often cover areas like online advertising services. Using SAC 998365 for such engagements keeps the nature of the service and its GST classification aligned with the agreed scope.
Internet Advertising Services GST Rate for SAC Code 998365
From a GST perspective, internet advertising services are treated as supply of services. The taxable value usually includes fees for planning, creative work, media buying, campaign execution and any bundled charges billed under the same contract.
After the September 2025 GST revision, most advertising and marketing related services that are not specifically exempt continue 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 rules.
The table below summarises the latest standard GST rate for SAC code 998365.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998365 | Sale of Internet advertising space | 18% with ITC | 18% with ITC | Digital ad inventory (web, apps, social) falls here. Standard GST treatment is 18% with ITC for B2B advertisers; there is no notified concessional rate in the latest rationalisation. |
In practice, agencies and intermediaries offering internet advertising services should apply 18% GST on the taxable value, mention SAC 998365 on invoices and keep this code stable in GST records so that advertising income is easy to track.
Explore Other SAC Codes Under 9983
SAC 998365 comes under heading 9983, which groups advertising, media, research and related professional support services used by businesses and institutions.
Below is a list of related six-digit SAC codes under 9983.
For the 9983 group, this code will normally apply where the main service is clearly internet advertising services. Other codes in the same heading should be used when the engagement clearly fits their specific activity.
Conclusion
This code is meant for internet advertising services where campaigns and media placements are run for a fee. The code is generally taxed at 18% under GST, and applying it with the correct rate in % makes it easier to track advertising costs and support GST compliance.
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 998365 in GST for internet advertising services?
SAC 998365 covers sale of online advertising space, including banner ads, search ads, social media placements and other internet based ad inventory where platforms charge advertisers based on impressions, clicks, views or time based display.
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Does SAC 998365 cover sale of online ad space such as banners, search and social ads?
Yes, websites, apps, search engines and social media platforms selling digital ad placements use this code. It also applies when networks or publishers monetise inventory directly from advertisers rather than only earning commissions as intermediaries.
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What GST rate applies to internet advertising under SAC 998365?
Internet advertising services under SAC 998365 are generally taxed at 18% GST. Foreign platforms serving Indian advertisers may come under import of services rules, where the advertiser may need to pay IGST under reverse charge in some cases.
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Should platforms and networks use SAC 998365 when charging for online impressions or clicks?
Yes, when billing advertisers for impressions, clicks, views or conversions on their digital properties, platforms normally classify the supply under 998365. Any allied campaign management or creative work can either be bundled or billed separately under other relevant SAC codes.
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Can businesses claim ITC on GST paid for SAC 998365 campaigns?
Registered businesses can usually claim ITC on GST paid for qualifying internet advertising where it helps in promoting taxable supplies. They should ensure invoices are in the correct format, IGST or CGST/SGST is properly reflected, and the campaigns are not purely personal or linked only to exempt activities.