Professional services
A market research agency's invoice should break a study into its stages: questionnaire design, fieldwork, data processing and the final report, with sample size, cities covered and methodology stated. Market research is SAC 998371 and public opinion polling 998372, both at 18%. Fieldwork costs such as respondent incentives and interviewer fees, when contracted by the agency, are part of the taxable value. Foreign clients commissioning studies of the Indian market can be billed under LUT if export conditions are met.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Consumer brand health study: questionnaire design and pilot | 998371 | 1 OTH | 80,000.00 | 80,000.00 | 18% |
| Quantitative fieldwork, face-to-face interviews, 6 cities | 998371 | 1200 NOS | 450.00 | 5,40,000.00 | 18% |
| Focus group discussions, 8 respondents each, moderation and transcripts | 998371 | 6 NOS | 35,000.00 | 2,10,000.00 | 18% |
| Data processing, tabulation and final presentation | 998371 | 1 OTH | 1,20,000.00 | 1,20,000.00 | 18% |
| Pre-election opinion poll, telephone survey, one state | 998372 | 1 OTH | 2,50,000.00 | 2,50,000.00 | 18% |
| Taxable value | ₹12,00,000.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹2,16,000.00 | ||||
| Invoice total | ₹14,16,000.00 | ||||
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: Billing for Service Businesses: Models, GST and Best Practice · Export Invoice Under LUT: How to Bill Exports Without Paying IGST · Advance Payment Under GST: Receipt Vouchers, Tax and Adjustment
The official SAC list has market research services at 998371 and public opinion polling at 998372, both under heading 9983. They are taxed at 18%, and the 56th GST Council's services annexure made no change to them. Data analytics delivered as an IT service would fit the information technology codes instead, so keep classification tied to what the client is buying: insight from research, or software and data processing.
Most agencies subcontract fieldwork to local field partners in each city. The field partner bills the agency, which takes input credit if the partner is registered, and the agency bills the client for the complete study at 18%. Respondent incentives paid in cash or vouchers are the agency's cost and form part of the value of its supply to the client; they are not pure-agent payments because the agency decides and pays them.
A global brand or consultancy outside India commissioning a study of Indian consumers is a common client. Where the client is outside India and pays in foreign exchange, the service is an export and can be zero-rated under LUT. The fact that the research is performed in India and about India does not change the place of supply, which for these services is the recipient's location.
Studies are usually paid 40-50% on commissioning. That advance attracts GST when received through a receipt voucher, adjusted on the later milestone invoice. If a study is cancelled after fieldwork has started, cancellation charges retained are taxable at 18%.
Mystery shopping and store audits are also market research. The invoice should list the number of stores or visits, the cities and the audit period. Purchases made by mystery shoppers on the client's instructions, and returned or handed over to the client, may need careful treatment; agree in the contract whether they are reimbursed at actuals.
Government departments deduct 2% GST TDS on contracts above ₹2.5 lakh. Opinion polls for political parties are taxable at 18% like other polling services.
Some agencies sell ready-made industry reports or syndicated data to many clients rather than custom studies. A report delivered as a downloadable file or through a subscription portal may fall under online information services rather than market research, while a printed report shipped to the buyer is closer to a supply of goods. In each case the invoice should name the report title, edition, licence type (single user or enterprise) and the access period. Custom studies commissioned by one client stay under 998371 at 18%, and the agency should not mix syndicated sales and custom research on the same line, because their classification and documentation differ.
Market research services under SAC 998371 are taxed at 18%.
Yes. Incentives paid by the agency are part of its cost of supply and are included in the taxable value.
Yes, if the client is located outside India and the other export conditions are met, even if the research is about India.
Public opinion polling services use SAC 998372, taxed at 18%.
No. Fieldwork partners work under the agency's contract, so their charges are the agency's cost. The agency claims input credit on their GST and charges 18% to the client on the full study value, including fieldwork.
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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