GST services for agencies.
Marketing, digital and creative agencies bill retainers and pass-through costs, clean GST keeps client billing simple.
About GST for agencies
Agency services, advertising, marketing, design, digital, are taxed at 18%. The tricky part is pass-through spend: media buys, influencer payments and subcontracted work all affect your input credit and how you invoice clients.
Agencies serving overseas clients can zero-rate those exports under a LUT, while domestic retainers and project fees follow standard 18% rules with full input credit on eligible costs.
GST at a glance
- Agency services at 18%
- ITC on media, tools & subcontractors
- Export of services zero-rated
- Watch pass-through vs principal billing
GST requirements for agencies
- GST registration above the threshold
- Tax invoices for retainers and projects
- Correct treatment of pass-through costs
- LUT for overseas clients
- Input credit on media and subcontracting
- GSTR-1, GSTR-3B and annual return
Our GST services for agencies
Common GST challenges
How we get you compliant
Consultation
A free call to understand your business and obligations.
Documents
We collect KYC and business proofs, fully online.
Registration
We obtain or update your GSTIN with the department.
Return filing
Monthly or quarterly returns prepared and filed.
Compliance
Ongoing tracking so you never miss a date.
Documents typically required
GST rates for agencies
| Supply / scenario | GST |
|---|---|
| Advertising & marketing services | 18% |
| Design & creative services | 18% |
| Export of services (LUT) | 0% |
| Input credit | on media & subcontracting |
| Certain vendor payments (RCM) | as applicable |
Indicative rates, GST law and notifications change over time. Confirm your exact rate with an Expert before invoicing.
Agencies GST questions
What GST rate do agencies charge?
18% on advertising, marketing, design and digital services. Export of these services to foreign clients can be zero-rated under a LUT.
How do I handle media spend I pay on behalf of clients?
It depends on whether you act as a principal or a pure agent. The treatment changes whether GST applies to the reimbursement. We structure your invoices correctly.
Can agencies claim input tax credit?
Yes, on media buys, software, subcontractors and office costs used for taxable services. This is often a significant saving.
Do influencer payments attract reverse charge?
Some vendor and creator payments can fall under reverse charge depending on their registration status. We assess and file these for you.
Is registration mandatory for a small agency?
Once turnover crosses ₹20 lakh (₹10 lakh in special-category states), yes. Many register earlier to bill corporate clients.
Which returns does an agency file?
GSTR-1 and GSTR-3B (monthly or quarterly), plus the annual return and any export refund claims.
Creative work, clean compliance.
We sort out pass-through billing, input credit and export refunds so your client invoices stay simple.