SAC for AD reveue and Affiliate Marketing Commision
This query is : Resolved
01 October 2023
If one starts an Affiliate Marketing Website on which he is earning Income as Affiliate Marketing commission in US$ and also earning Ad. Revenue ( from running ads on the website ) also in US$ from Google - What all SACs are to be added in his GST Certificate ? Can these SACs just be added online on the GST login and he can start this business OR Are there some other formalities also to be done in the GST dept. or any other dept. to start this new venture ? Presently he is doing only 100% exports of handicrafts as a merchant exporter.
16 January 2024
SAC (Services Accounting Code) 998361 specifically relates to 'Advertising Services'. However, considering your role involves more than just advertising, but promoting and redirecting customers, the SAC code 9971 might be more appropriate as it covers 'Other professional, technical and business services'.2
https://www.taxfull.com/19500/affiliate-income-commission-received-from-a-foreign-company-as-export-of-services-or-not#:~:text=SAC%20(Services%20Accounting%20Code)%20998361,%2C%20technical%20and%20business%20services%27.
https://www.taxfull.com/19500/affiliate-income-commission-received-from-a-foreign-company-as-export-of-services-or-not#:~:text=SAC%20(Services%20Accounting%20Code)%20998361,%2C%20technical%20and%20business%20services%27.
04 March 2024
Thank you Asha Kanta. But 9971 relates to Financial services. And the link you have given is suggesting to go for 998361 as it includes advertising and sales promotion. What do you suggest?
22 July 2025
For your Affiliate Marketing Website earning income from:
Ad Revenue (Google Ads etc.)
Affiliate Marketing Commission
Here’s how you should classify the SAC codes under GST:
1. Ad Revenue (Advertising Services)
Use SAC 998361 — Advertising Services.
This code specifically covers income earned from running ads on your website.
2. Affiliate Marketing Commission
This is generally considered a business auxiliary service or a commission received for sales promotion.
The appropriate SAC would be 998319 — Business auxiliary services.
Alternatively, 998361 can also be used if you consider it part of advertising & sales promotion.
About Your Concern:
SAC 9971 is mostly related to financial services and may not be suitable here.
Since affiliate marketing commission and advertising are related but distinct, it’s advisable to include both SAC 998361 (Advertising Services) and SAC 998319 (Business Auxiliary Services) in your GST registration.
Starting the Business under GST:
You can add these SAC codes online via your GST portal by filing an amendment application for your registration.
No separate approvals are generally required specifically for starting an affiliate marketing or ad revenue business.
Ensure your GST registration is updated to include these services before you start invoicing for them.
Ad Revenue (Google Ads etc.)
Affiliate Marketing Commission
Here’s how you should classify the SAC codes under GST:
1. Ad Revenue (Advertising Services)
Use SAC 998361 — Advertising Services.
This code specifically covers income earned from running ads on your website.
2. Affiliate Marketing Commission
This is generally considered a business auxiliary service or a commission received for sales promotion.
The appropriate SAC would be 998319 — Business auxiliary services.
Alternatively, 998361 can also be used if you consider it part of advertising & sales promotion.
About Your Concern:
SAC 9971 is mostly related to financial services and may not be suitable here.
Since affiliate marketing commission and advertising are related but distinct, it’s advisable to include both SAC 998361 (Advertising Services) and SAC 998319 (Business Auxiliary Services) in your GST registration.
Starting the Business under GST:
You can add these SAC codes online via your GST portal by filing an amendment application for your registration.
No separate approvals are generally required specifically for starting an affiliate marketing or ad revenue business.
Ensure your GST registration is updated to include these services before you start invoicing for them.
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22 July 2025
Thank you for the clarification. The business was started in wife's name and GST registration has not been applied since the revenue is much lower than 20 lakhs which is the requirement for GST registration. Once the revenue crosses 20 lakhs, we will apply for GST registration. "Or" do we need to apply when it is about to reach 20 lakh? Plus is there any way to save the 18% GST here? Can we show it as export of services or similar ( I am not sure ) and claim full GST refund? If, yes then can you help with the whole process?
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