Professional services

GST invoice format for a digital marketing agency

A digital marketing agency's invoice should separate its own management fee from any media spend it recharges. Campaign planning, SEO and social media management are advertising and related services under SAC 998361 at 18%; buying online ad space for a client falls under 998365 when the agency buys and resells it. State the campaign, platforms, reporting period and deliverables such as posts or keywords, and show whether ad spend was bought in the agency's name, since that decides whether it is taxed.

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Sample digital marketing agency invoice

Description	HSN/SAC	Qty	Rate (₹)	Taxable (₹)	GST
Social media management retainer, Instagram and Facebook, 20 posts, October 2026	998361	1 OTH	45,000.00	45,000.00	18%
SEO retainer, 30 target keywords, on-page and link building, monthly	998361	1 OTH	35,000.00	35,000.00	18%
Google Ads campaign management fee, 15% of media spend	998361	1 OTH	30,000.00	30,000.00	18%
Online advertising space purchased on agency ad account and resold, October 2026	998365	1 OTH	2,00,000.00	2,00,000.00	18%
Landing page design for lead generation campaign	998391	1 OTH	18,000.00	18,000.00	18%
Taxable value				₹3,28,000.00
GST (CGST + SGST, or IGST if inter-state)				₹59,040.00
Invoice total				₹3,87,040.00

Sample prices are illustrative. Check the GST rate for your exact item or service before billing.

Extra fields a digital marketing agency invoice needs

Campaign name and period: Clients run several campaigns at once, for a festive sale, a product launch, a lead drive. Naming the campaign and its dates lets the marketing team approve the bill against their own media plan.
Platform breakdown: Listing Google Ads, Meta, LinkedIn or YouTube separately shows where the budget went and helps the client compare platform performance with the invoice in hand.
Media spend versus management fee: Showing ad spend and the agency's fee as distinct lines, with the fee percentage stated, is the clearest way to prove the commission agreed in the contract.
Deliverables count: Retainers promise a number of posts, blogs, reels or backlinks. Quantities on the invoice let the client check delivery and set a baseline for performance reviews.
Ad account ownership: Note whether ads ran from the client's own ad account or the agency's. This decides whether the spend is a pure-agent cost or part of the agency's taxable supply.
Performance report reference: A link or reference number for the monthly report supports retainer billing and helps the client's finance team justify the expense internally.

Standard GST invoice fields

Rule 46 of the CGST Rules applies to every tax invoice, including this one:

Supplier name, address and GSTIN
Consecutive invoice number (max 16 characters, unique for the year)
Date of issue
Customer name, address and GSTIN (if registered)
Place of supply with state name
HSN/SAC code per item
Description, quantity and unit
Taxable value after discounts
GST rate and CGST + SGST or IGST amounts
Signature or digital signature

GST rules that matter for a digital marketing agency

Recharged ad spend is usually taxable

When an agency runs a client's campaigns from its own ad account, it buys ad inventory from Google or Meta in its own name and then bills the client. That spend is part of the agency's supply and carries 18% GST on the full amount, with the agency claiming credit for the GST charged by the platform. The pure-agent exclusion applies only when the client is the contracting party with the platform and the agency merely pays on its behalf. In practice, agencies that want to keep spend out of their turnover set up ads on the client's own account and let the platform bill the client directly.

Codes within the advertising group

The SAC list has advertising services at 998361, purchase or sale of advertising space on commission at 998362, sale of internet advertising space at 998365, and market research at 998371. Design work for creatives can sit under specialty design at 998391. All are at 18%, and none was changed in the September 2025 rate rationalisation. A clean code per line helps if the agency is later asked how much of its turnover is commission versus resale of media.

Clients abroad

A Dubai or US brand hiring an Indian agency for campaigns targeting its own market is receiving an export of services, provided the client is outside India and payment comes in foreign exchange. Issue the invoice under LUT without IGST. Campaigns targeting Indian audiences for a foreign client can still qualify, as the place of supply for most such services is the client's location, but document the client's foreign address carefully.

Influencer and freelancer payouts

Agencies often pay influencers and freelance creators. A registered influencer will charge GST to the agency, which claims credit; an unregistered one will not. Income-tax TDS under section 194J or 194C may apply on payments to them. Bill the client for influencer content as part of your own fee line, not as a pass-through, unless the client contracted the influencer directly.

Retainers and monthly invoicing

Most agency work is on monthly retainers. Raise each invoice at the start or end of the month as the contract says, and keep the same date each month, because GST on continuous supply follows the payment due date. If the client pauses work, a credit note for the unused period is cleaner than leaving the invoice unpaid.

Common billing mistakes

Showing recharged Meta or Google spend below the GST total when the ads ran on the agency's own account and the spend is taxable.
Billing one consolidated retainer line with no deliverable counts, which the client's procurement team cannot audit.
Charging IGST to a foreign client because no LUT was filed before the first export invoice of the year.
Paying influencers without checking registration and TDS, then recharging the cost to the client as a non-taxable pass-through.

Digital Marketing Agency GST invoice: FAQ

What is the GST rate for digital marketing services?

Digital marketing, SEO and social media management are advertising and related services taxed at 18% GST. Use SAC 998361 for campaign and management work.

Do I charge GST on ad spend I recharge?

Yes, when you buy the ads in your own name. The platform charges you GST, which you claim as credit, and you charge 18% to the client on the recharged amount.

Can I bill ad spend as reimbursement?

Only if the client is the contracting party for the ads and you pay as their agent. Set up campaigns in the client's own ad account to achieve this cleanly.

Which SAC suits website landing page design?

Design of creative assets fits specialty design services under 998391; full website development by coders fits 998314. Both are taxed at 18%.

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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