The advertisement hsn code for an ad agency's services is SAC 998361, and selling advertising space online is 998365, both at 18% GST. The one lower rate in this group is the sale of advertising space in print media, such as newspapers and magazines, at 5%.
Digital marketing, social media management and sales promotion are mostly 18%. This page lists the codes, explains media buying, and shows an agency invoice. Other professional services are on the SAC 9983 page.
Advertising and marketing: codes and GST rates
Item / SAC / GST- Advertising services (planning, creative, campaigns)18%SAC 998361
- Purchase or sale of ad space or time on commission18%SAC 998362
- Sale of ad space in print media5%SAC 998363
- Sale of TV and radio advertising time18%SAC 998364
- Sale of internet advertising space18%SAC 998365
- Sale of other ad space (hoardings, transit)18%SAC 998366
- Digital marketing and social media management18%998361 or 998365
- Sales promotion and business promotion18%SAC 998397 or 998361
- Printing of flex banners and posters18%Goods, see printing
Quick facts
SAC group
99836: advertising services and space sellingGST rate
18% (9% CGST + 9% SGST)Print media space
5%Digital marketing
998361 or 998365 at 18%Digits to print
4 digits up to Rs 5 crore turnover, 6 aboveCommon wrong code
998399 for ad agencies
Advertisement hsn code list
| Code | Service | GST |
|---|---|---|
| 998361 | Advertising services: planning, creative, campaigns | 18% |
| 998362 | Purchase or sale of ad space or time, on commission | 18% |
| 998363 | Sale of advertising space in print media | 5% |
| 998364 | Sale of TV and radio advertising time | 18% |
| 998365 | Sale of internet advertising space | 18% |
| 998366 | Sale of other advertising space, such as hoardings | 18% |
| 998367 | Sale of naming and sponsorship rights | 18% |
Digital marketing hsn code
Digital marketing agencies that plan and run campaigns, write content and manage social media accounts usually bill under 998361 at 18%. Selling ad space on a website or app is 998365. Search engine optimisation and web design are sometimes billed under 998314 (IT design and development) or 998361; all are 18%.
Print media ad space at 5%
When a newspaper or magazine sells advertising space, the rate is 5% under 998363. An ad agency that buys space and resells it, or earns commission, charges 18% on its own service. Where the agency acts as a pure agent and passes on the newspaper's bill at actuals, the 5% space cost may be kept out of its own taxable value; this needs proper documents.
Business promotion and sales promotion
Sales promotion services such as product sampling, in-store promotion and loyalty programmes are 18%. Gifts and samples given away free are not supplies by themselves, but credit on goods given as free samples is blocked. Event based promotions are covered on the event management page.
Agency invoice
Ad agency bill to a client in another state: Creative and campaign management, SAC 998361, Rs 1,50,000. Online ad spend billed as space, SAC 998365, Rs 3,00,000. Taxable value Rs 4,50,000. IGST 18% Rs 81,000. Total Rs 5,31,000.
Advertisement gst rate: what advertisers can claim
A business paying an agency for ads can claim credit of the 18% GST, since advertising is a business input. Credit on print media space at 5% is also available. Agencies located outside the client's state charge IGST; for services to a client outside India that meet the export conditions, the bill can be zero rated. Influencer and celebrity endorsement fees are services at 18%, and some endorsements by individuals fall under reverse charge rules for specified services; check the current entry.
Printing and hoardings
Printing flex banners, posters and brochures is a supply of printed goods; see printing. Renting hoarding space is 998366 at 18%. Hoarding structures sold as goods are steel structures under 7308.
Ad agencies should read this summary of SAC 99836 as background only. Media buying and pure agent arrangements need careful documents, so check the services notification on the GST portal and ask a GST practitioner or chartered accountant about your contracts.
Frequently asked questions
What is the hsn code for advertising services?
Advertising services are SAC 998361, at 18%.
What is SAC 998365?
998365 is the sale of internet advertising space, at 18%.
What is the GST on newspaper ads?
Sale of ad space in print media is 5%. The agency's own fee is 18%.
What is the digital marketing sac code?
Digital marketing services are usually billed under 998361 or 998365, at 18%.
What GST rate applies to sales promotion?
Sales promotion services are 18%.