Professional services
A BPO invoice should show the pricing model the contract uses: per seat per month, per productive hour, per call or per minute, with volumes for the billing month and any SLA penalties or incentives. Telephone-based support is SAC 998593 and back-office processing often falls under combined office administrative services, 998594, both at 18%. For overseas clients the key question is whether the BPO supplies services on its own account, which can be an export, or acts as an intermediary, which is taxed in India.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Inbound customer support, dedicated seats, October 2026 | 998593 | 20 NOS | 45,000.00 | 9,00,000.00 | 18% |
| Outbound lead qualification calls, per productive hour | 998593 | 1600 NOS | 350.00 | 5,60,000.00 | 18% |
| Email and chat support, per ticket resolved | 998593 | 5000 NOS | 35.00 | 1,75,000.00 | 18% |
| Back-office data processing and document indexing | 998594 | 1 OTH | 85,000.00 | 85,000.00 | 18% |
| SLA penalty for service level below 80% in week 2 | 998593 | 1 OTH | -15,000.00 | -15,000.00 | 18% |
| Taxable value | ₹17,05,000.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹3,06,900.00 | ||||
| Invoice total | ₹20,11,900.00 | ||||
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
Read more: Export Invoice Under LUT: How to Bill Exports Without Paying IGST · Credit Note Under GST: When, How and By When to Issue It · E-Invoice Applicability Limit: Who Crosses the ₹5 Crore Line
The SAC list places telephone-based support services at 998593 and combined office administrative services at 998594, both under heading 9985, support services, taxed at 18%. Chat and email support are usually treated under the same telephone-based support code because they are part of one customer-contact process. Data processing that is mostly software-based may fit IT codes. All carry 18%.
For overseas clients the place of supply is generally the recipient's location, which makes the service an export, but intermediary services are an exception: their place of supply is the supplier's location in India. A BPO that provides support to its client's customers on its own account is not an intermediary; one that arranges or facilitates supplies between its client and third parties, such as selling the client's products for commission, may be. Write the contract and invoices to reflect the actual role.
Many Indian BPOs are subsidiaries of foreign companies. Services to a related party abroad can still be exports, but the Indian entity and the foreign client must not be merely establishments of the same person, which is the case for a branch rather than a separate subsidiary. Transfer pricing documentation should match the invoice values.
Contracts often reduce fees for missed SLAs. Showing the penalty as a negative line on the same month's invoice reduces the taxable value directly. If penalties are computed later, issue a credit note referring to the original invoice within the time limit.
BPOs with turnover above ₹5 crore must issue e-invoices with IRN to domestic business clients. Exports also need to be reported through the e-invoice system as zero-rated supplies when the threshold applies.
BPOs that export under LUT accumulate input credit on rent, laptops and telecom. That credit can be claimed as a refund of unutilised ITC on zero-rated supplies, so keep purchase invoices and export invoices reconciled monthly.
A domestic BPO serving Indian clients from centres in more than one state needs a separate GST registration in each state where it has a centre. Invoices for work done at the Pune centre for a Bengaluru client are issued from the Maharashtra registration with IGST. Where one contract is serviced from two centres, issue separate invoices from each registration for the seats or hours delivered there. Shared costs such as management or technology at the head office may need to be distributed through an input service distributor registration or cross-charged between the registrations, which is a frequent audit point for multi-location BPOs.
Telephone-based support services under SAC 998593 are taxed at 18%.
Usually yes, if the client is abroad, payment is in foreign exchange and the BPO is not an intermediary or a branch of the same person.
Use the number of seats as quantity and the monthly seat rate as the unit price, with the billing month in the description.
Yes. Penalties shown on the invoice or through a credit note reduce the taxable value.
Yes, a separate GST registration is needed in each state from which it supplies services, such as each state with a delivery centre.
Sources: PIB — Recommendations of the 56th GST Council (Annexure III, services rate changes) · GSTN — Official HSN/SAC master list (SAC_MSTR sheet) · GST Council — Notification 11/2017-CT(Rate), services rates (consolidated)
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