SAC Code for Digital Marketing and Advertising Services

For most digital marketing and advertising work, the starting point is SAC 998361 (advertising services), with 998371 for market research where that is genuinely what you sell. The right code depends on what each invoice is for, so map your service lines first and have your CA confirm the codes before they go onto invoices and the EDF.

Key takeaways

• SAC 998361 covers advertising services and is the usual anchor for agencies running campaigns and creative.
• SAC 998371 covers market research — use it only when research is the deliverable.
• Design-heavy or tech-heavy work may belong elsewhere, such as 998393 (other specialty design) or the IT codes; confirm with your CA.
• The SAC on your GST invoice should match the SAC you enter in Part 2B of the EDF for that invoice.

Why the SAC code matters more for exporters

SAC codes are the six-digit classification codes for services under GST. For a domestic agency, the code mostly decides how the invoice is reported. For an agency billing foreign clients, it shows up in three places that need to agree:

1. Your export invoice, issued under LUT without IGST or with IGST paid and refunded.
2. Part 2B of the EDF, where each invoice is a row with its own SAC code column.
3. Your GSTR-1, where export supplies are reported.

When the three line up with the description of services and the purpose code on your FIRA, your file tells one consistent story. When they don't, you invite questions — especially in a GST refund claim.

The codes digital marketers usually look at

These are common examples, not a ruling. The GST classification of a mixed service can turn on detail, so a five-minute conversation with your CA is worth it. You can also browse codes with our SAC code finder.

SEO, content and social: the grey zone

Digital marketing doesn't fit neatly into categories written before the industry existed. SEO, content marketing and community management are the classic grey areas.

If the purpose of the work is to promote the client's brand or products to an audience, it leans towards advertising. If it is mainly writing, design or technical optimisation of a website, another code may describe it better. There is no single answer that fits every agency, which is exactly why you should agree an approach with your CA and then apply it consistently across invoices.

A useful habit is to split your retainer into service lines on the invoice. "Paid media management — USD 2,000" and "Website development — USD 1,500" can carry different SAC codes and different rows of detail.

Worked example: one agency, three clients

Copperleaf Digital Pvt Ltd, an agency in Ahmedabad, raises these invoices in March 2027:

All three are exports of services, invoiced under LUT with the wording "Supply meant for export under LUT without payment of IGST". All three go on a single March EDF, one row each, due by 30 April 2027. In Part 2B, each row carries its own SAC code and a short description that matches the invoice.

When the money arrives, Copperleaf checks each FIRA. RBI purpose code P1007 covers advertising, trade fairs and market research, so the first two payments would likely fall there — but the bank confirms the code, not the agency.

The intermediary question

Agencies sometimes act as a go-between: arranging services from a third party for a foreign client and earning a commission or margin. Under GST, an "intermediary" arrangement can change the place of supply and stop the service from counting as an export at all. Our explainer on intermediary services under GST covers the risk.

If you buy media or resell a platform on your client's behalf, talk to your CA about how the contract and invoice are framed. Getting the SAC code right doesn't fix an intermediary problem.

Putting it on the invoice and the EDF

A clean export invoice for a marketing agency carries the client's overseas address, the currency, the SAC code for each service line, and the LUT wording. Our export invoice generator has fields for all of these.

When you prepare the EDF, copy the SAC code from the invoice into Part 2B rather than typing it fresh. Copy-paste errors between a 998361 and a 998371 are easy to make and annoying to explain later. The agency-specific walkthrough in EDF for digital marketing agencies shows the full monthly routine.

This is general information, not legal or tax advice. Your CA should confirm the classification of your specific services.

Frequently asked questions

Is 998361 the SAC code for SEO services?

It can be, if your SEO work is mainly about promoting the client's brand and products. If it is mostly technical work on a website, another code may describe it better. Agree an approach with your CA and use it consistently.

Does the SAC code change the GST rate on an export?

An export of services that meets the Section 2(6) IGST Act conditions is a zero-rated supply, whatever its SAC code. The code classifies the service; zero-rating depends on the export conditions being met, including payment in convertible foreign exchange.

Do I need a SAC code in the EDF?

Yes. Part 2B of the EDF has a SAC code column for each invoice. Use the same code that appears on your GST invoice for that invoice.

Can one invoice have more than one SAC code?

Yes, if it has separate line items for distinct services, each line can carry its own code. In the EDF, you can describe the main service and note the split in the remarks column, or follow whatever approach your CA and bank prefer.

Which purpose code goes with advertising exports?

P1007 covers advertising, trade fair and market research services. The bank assigns the purpose code on the inward remittance, so tell your bank what you do and check each FIRA when it arrives.

Bottom line

Start with 998361 for advertising-led work, use 998371 only for genuine research, and split mixed retainers into clear service lines. Confirm with your CA, then look up any edge cases in the free SAC code finder.