Code and rate
The official SAC list places investigation services at 998521, alongside security consulting at 998522 and polygraph and fingerprinting at 998527 and 998528. These are support services under heading 9985, taxed at 18%. Investigation is not the same as security services for reverse-charge purposes: the reverse-charge entry refers to services provided by way of supply of security personnel, so an agency supplying investigation reports, not guards, charges GST forward even if it is a partnership.
Confidentiality on the invoice
GST rules require a description of the service but not the details of the investigation. A description such as background verification, case ref BV-2214, satisfies the requirement without naming the person investigated. Individuals hiring an agency for a personal matter may not want the case description on a document their family can see; the agency can keep it brief but must still issue a proper invoice once registered.
Bulk verification contracts
HR verification for companies often runs to hundreds of checks a month. Raise one monthly invoice per client entity with counts per check type, and attach or reference a list of case IDs. If a check is cancelled or cannot be completed, reduce it on the invoice or issue a credit note.
Field expenses and actuals
Agencies sometimes bill travel at actuals and argue it is not taxable. When the agency books the travel and pays for it, it is part of the agency's service and taxed at 18%. Only expenses paid in the client's name, such as a court copy fee in the client's name, can be pure-agent costs.
Registration and licences
Several states require detective agencies to obtain a licence or register under local rules, and agencies that supply guards need a PSARA licence. These are not GST matters, but corporate clients ask for them. Print any licence number you hold on the invoice.
Foreign clients
Due diligence on Indian companies ordered by foreign investors can qualify as an export of services if the client is abroad and pays in foreign exchange. File an LUT before issuing the first export invoice of the year.
Insurance and bank investigations
Insurers and banks are among the largest clients of investigation agencies, ordering claim verifications and borrower field checks in volume. These clients are registered and claim input credit, so they insist on correct invoices with their branch GSTIN where they have state registrations. Invoice each state registration separately for the cases handled there, name the claim or loan reference in coded form, and follow the client's panel rate card. Fees per case usually vary by distance or claim type, so show each rate band as its own line with the case count, rather than one blended figure that the client's vendor management system cannot validate.
Small agencies and composition
An agency with turnover up to ₹50 lakh serving mainly individuals in one state can choose the 6% services composition scheme. Corporate clients such as insurers lose input credit under composition, so agencies that depend on them usually stay in the regular scheme.