GST · SAC 998365 · FY 2026–27

SAC 998365: Sale of Internet Advertising Space

SAC 998365 (Sale of Internet Advertising Space) is taxed at 18% GST: 9% CGST + 9% SGST when you and your client are in the same state, 18% IGST when you are not, and 0% on exports under a Letter of Undertaking (LUT). Covers: Selling ad space on a site or app you own.

Rate source: Notification 11/2017-Central Tax (Rate), Heading 9983

18%

Domestic
0% export (LUT)

Heading

9983 — professional & technical services

Domestic rate

18% (9+9 / IGST)

Export (LUT)

0%

Reverse charge

No — forward charge

What falls under 998365

The CBIC Scheme of Classification defines 998365 as "Sale of internet advertising space" — a publisher selling advertising inventory on a website, newsletter or app, other than on commission. It is NOT a web design code, despite being widely mislabelled as one online. If you build websites for clients, that is 998314 (information technology design and development services); specialty and graphic design is 998391; running advertising campaigns for a client is 998361; selling space or time on commission is 998362.

Banner inventory on an owned site

Newsletter sponsorship slot

In-app ad placement sold directly

Not this code — custom software development and design — the most common freelance dev sac → 998314 · ad creation, campaign design and media placement → 998361 · broking advertising inventory you do not own → 998362 · industrial, fashion, graphic and other specialty design → 998391

On the invoice

Invoice INV-0092SAC 998365

Banner inventory on an owned site₹85,000

CGST @ 9% + SGST @ 9% (same state — else IGST 18%)+ ₹15,300

Amount due₹1,00,300

Same work for a foreign client under LUT: IGST 0%, with the zero-rating declaration on the face of the invoice.

Tanvi, a Pune-based newsletter publisher (MH, state code 27), sells a sponsorship slot directly to a Bengaluru D2C brand (KA, state code 29). Rs. 85,000. Inter-state → IGST 18%. If she had instead built that brand a website, the code would be 998314.

Put this code on a real invoiceFree GST invoice generator — SAC prefilled, CGST-SGST vs IGST resolved from the client's state. No signup.

FAQ

Do I have to print the SAC code on my invoices?

Depends on turnover: up to Rs. 5 crore, the 4-digit SAC (9983) is enough on B2B invoices; above that, 6 digits are required. Printing the full 6-digit code (998365) everywhere is simplest and never wrong.

Under Rs. 20 lakh turnover — do I need to register and charge 18%?

Below Rs. 20 lakh aggregate turnover, registration is optional for pure service providers — you invoice without GST entirely. The Rs. 10 lakh threshold applies in only four special-category states (Manipur, Mizoram, Nagaland, Tripura), not the eleven usually listed online. Once registered, 18% applies to every domestic invoice regardless of turnover.

Wrong SAC code on past invoices — how bad is it?

If the rate charged was right, it is a clerical issue — fix it going forward. A wrong code with a wrong rate is the real problem; that needs a credit note and a corrected invoice. Mismatched SACs also cause GSTR-1 Table 12 disclosure issues and can trigger ITC audit queries at the client end.

Does SAC 998365 change under GST 2.0?

No. The September 2025 rate rationalisation reshuffled the goods slabs; professional and technical services stayed at the 18% standard rate, and export zero-rating under LUT is unchanged.

Notification reference: Notification 11/2017-CT(R) dated 28 June 2017 — the services rate table, at the serial for the code's heading (9982, 9983, 9985, 9992 or 9996 as applicable), as amended, including by Notification 15/2025-CT(R) (GST 2.0, from 22 September 2025).

For the CA reading this

The deadline sheet you already send, with your name on it

Every statutory date for the month — GST returns, advance tax, and the dates your client's own customers owe them: when the TDS they withheld must reach the department, and when the certificate is due. Add your firm's name and forward it as it stands. No signup, no email, nothing to accept.

Firm name (optional)Month

Download the image

The image is the one that travels on WhatsApp. Dates are statutory, not advice — the sheet says which rows bind whom.

Sources

Rates as notified for FY 2026–27 and can change. General information, not tax advice. Verify with your CA before you file.