Brand Promotion Services Under SAC Code 998397
Brand Promotion Services aim to increase brand visibility and recall through targeted campaigns, collaborations and presence at events. MSMEs and larger companies rely on these services to stay visible in a crowded market.
SAC 998397 is used when the main work relates to sponsorship and brand promotion services for marketing campaigns It is intended for professional assignments where the service provider brings specific skills, tools and experience to deliver well defined outputs.
In practical terms, projects under this SAC often touch areas like influencer marketing services, sponsorship marketing, sponsorship services. Using SAC 998397 in these situations keeps the service description and GST classification close to the actual scope of work.
Brand Promotion Services GST Rate for SAC Code 998397
Under GST, brand promotion services are considered supply of services. The taxable value usually includes strategy, planning, execution, content creation, coordination and reporting fees billed under the same campaign.
After the September 2025 GST revision, these professional and business support services that do not fall in a special exempt category continue under the standard 18% slab. Registered businesses can usually claim input tax credit when such services are used in relation to their taxable activities and proper documentation is maintained.
The table below gives the prevailing standard GST rate for SAC code 998397.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998397 | Sponsorship Services & Brand Promotion Services | 18% with ITC | 18% with ITC | Sponsorship and brand promotion fall in the same 99839 group and are treated at 18% GST, with concessional slabs only for specially certified football event services. No general rate change has been notified, so 18% continues. |
In day to day billing, firms that provide brand promotion services should apply 18% GST on the taxable value, mention SAC 998397 on tax invoices and follow the same code in GST records so that income from these assignments is easy to track.
Explore Other SAC Codes Under 9983
SAC 998397 falls under heading 9983, which groups a wide range of professional, technical, marketing and business support services commonly used by MSMEs, large companies and institutions.
Below are the major related six-digit SAC codes under parent 9983.
For the 9983 group, this code will normally apply when the primary work is clearly brand promotion services. Other codes in the heading should be selected if the engagement aligns more closely with their described activity.
Conclusion
This SAC code is meant for brand promotion services where clients appoint specialists for focused support over a defined scope. The code is generally taxed at 18% under GST, and using it consistently with the correct rate in % helps both service providers and recipients keep billing, input tax credit and GST compliance simple to explain.
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 998397 in GST for brand promotion services?
SAC 998397 covers sponsorship services and brand promotion campaigns, including event sponsorship, influencer marketing, co branding activities and promotional tie ups where the main supply is brand visibility and association.
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Does SAC 998397 cover sponsorship, influencer marketing and brand promotion campaigns?
Yes, payments made to event organisers, teams, influencers or celebrities for promoting a brand or displaying logos, hashtags or endorsements usually fall under 998397, provided they are not better described as pure advertising time or space.
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What GST rate applies to brand promotion services under SAC 998397?
Brand promotion and sponsorship services classified under SAC 998397 are generally taxed at 18% GST. In some cases, reverse charge can apply, for example where an Indian brand receives services from a foreign celebrity or influencer.
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Should agencies invoice sponsorship activations using SAC 998397?
Yes, when agencies manage sponsorship rights, branding at events, influencer collaborations or on ground activations, the supply is often classified under 998397. They should describe deliverables clearly, such as logo placement, shout outs or brand experiences, to support this classification.
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Can advertisers claim ITC on GST paid for SAC 998397 services?
Advertisers and sponsors can generally claim ITC on GST paid for qualifying brand promotion and sponsorships used to support taxable business activities, subject to normal ITC rules. They should keep agreements and performance reports as backup documentation for audits.