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GSTInvoice

GST Rates

GST on Advertising Services (18% Rate, SAC Code & Invoice)

Advertising services in India attract 18% GST. This applies to all forms of advertising — print, TV, digital, outdoor, and influencer marketing. Ad agencies must charge 18% GST on their fees and pass-through media costs. Understanding the agency model (principal vs agent) is critical for correct GST invoicing.

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GST Rates for Advertising Services

Service SAC Code GST Rate
Advertising agency services 998361 18%
Digital marketing / SEO / SEM 998363 18%
PR and communications 998369 18%
Creative / design services 998381 18%
Market research 998311 18%
Outdoor advertising (hoarding, billboard) 998362 18%

GST on Google Ads and Facebook Ads

Indian businesses running Google Ads or Meta (Facebook/Instagram) ads receive tax invoices from Google Ireland / Meta Ireland. Since these are imports of services, they are subject to 18% IGST under the Reverse Charge Mechanism (RCM). The Indian business self-assesses and pays the GST, then claims ITC on the same. Google and Meta do not charge GST on their invoices — the Indian recipient is responsible. The same RCM treatment applies to LinkedIn Ads, Twitter/X Ads, and other foreign digital advertising platforms.

Example

A Delhi company spends ₹1,00,000 on Google Ads in a month. Google's invoice shows ₹1,00,000 — no GST charged. The company self-assesses 18% IGST = ₹18,000 under RCM, pays it, and claims ₹18,000 ITC. Net cost to company: ₹1,00,000 (ITC offsets the GST).

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FAQs

What is the GST rate for advertising agencies?

18% GST (SAC 998361) on all advertising agency fees, commissions, and retainers.

Is GST charged on Google Ads spend?

Google does not charge GST. Indian businesses pay 18% IGST under RCM on Google Ads spend and claim it as ITC.

Can businesses claim ITC on advertising spend?

Yes. GST paid on advertising agency fees, media buying, and digital ad platforms (via RCM) is fully eligible for ITC.

What SAC code do ad agencies use?

SAC 998361 for advertising. SAC 998363 for digital marketing. SAC 998381 for creative/design. All at 18%.

Why Businesses Stop Using Excel for GST Invoices

Manual GST calculation mistakes

One wrong CGST/SGST split or a misapplied rate triggers notices and ITC denial for your buyer.

Slow invoice creation

Copying last month's Excel file, updating dates, recalculating — 20 minutes for what should take 30 seconds.

Formatting breaks on every device

Excel invoices look different on every printer and PDF converter. Clients complain about unreadable layouts.

No easy sharing or payment link

Sending PDFs over WhatsApp with no way for clients to pay directly slows down collections.

Incorrect tax type (IGST vs CGST+SGST)

Excel can't auto-detect intra vs inter-state supply. Wrong tax type = ITC rejected for your buyer.

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Disclaimer: The information in this article is for general informational purposes only and does not constitute professional tax, legal, or financial advice. GST rules and rates are subject to change. Consult a qualified CA or tax professional before making compliance decisions.

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