Professional services
A PR agency's invoice should separate the monthly retainer from project work such as a launch event, press conference or crisis support, and from costs it pays on the client's behalf. Business consulting including public relations is SAC 998312 at 18%. List the retainer month and services covered (media outreach, press releases, interviews arranged), the event details for project lines, and any newswire distribution or event venue costs. Costs the agency contracts in its own name are part of its taxable value; it cannot treat them as reimbursements.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| PR retainer, October 2026: media outreach, two press releases, interview coordination | 998312 | 1 OTH | 1,20,000.00 | 1,20,000.00 | 18% |
| Product launch press conference, Mumbai, planning and media management | 998312 | 1 OTH | 1,80,000.00 | 1,80,000.00 | 18% |
| Paid newswire distribution, national | 998312 | 1 OTH | 25,000.00 | 25,000.00 | 18% |
| Media monitoring and monthly coverage report | 998312 | 1 OTH | 15,000.00 | 15,000.00 | 18% |
| Media training workshop for two spokespersons | 998312 | 1 OTH | 50,000.00 | 50,000.00 | 18% |
| Taxable value | ₹3,90,000.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹70,200.00 | ||||
| Invoice total | ₹4,60,200.00 | ||||
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:
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Public relations is specifically included in business consulting services in the official SAC list, under 998312, in heading 9983. The rate notification taxes other professional, technical and business services at 18%, and the 56th GST Council's services annexure made no change. Paid advertising placed by the agency belongs under the advertising codes, so an agency that both earns media coverage and buys ad space should split them.
Most PR is sold on monthly retainers. The invoice for each month must be issued on or before the payment due date fixed in the contract. Agencies that wait until the coverage report is ready, often weeks later, risk paying tax late. Fix a billing date in the contract, such as the first working day of the month, and invoice on that date.
Launch events and press conferences involve venue, audio-visual, and catering for journalists. When the agency books and pays for them, they are part of its PR service and carry 18% on the full amount. The agency claims input credit on the vendors' bills where allowed. A client that wants venue costs outside the agency's invoice should contract the venue directly.
Gifts or payments to journalists for coverage are not a legitimate cost to bill and create compliance and reputational risk. PR invoices should describe outreach, content and events, not payments for editorial coverage.
A foreign company hiring an Indian PR agency for Indian media coverage is receiving a service whose place of supply is generally its own location, so it can be an export under LUT, provided payment is in foreign exchange. Events held in India for the foreign client may fall under event place of supply rules instead, so treat event lines carefully.
Corporate clients usually deduct TDS on PR fees under section 194J or 194C. Agencies should reconcile the deductions monthly against each retainer invoice.
Crisis communication is billed differently from routine retainers: work is urgent, often round the clock, and priced by the hour or as a fixed crisis fee. The invoice should name the issue in neutral terms, the period of crisis support, the senior team hours and any monitoring or social listening tools used. Online reputation management that involves technical search or social media work may overlap with digital marketing, but it stays at 18% under 998312 when the core supply is communication advice. Keep confidential detail out of the invoice and refer to the engagement letter instead, because finance teams outside the communications function will see the bill.
Public relations services under SAC 998312 are taxed at 18%.
Yes, if the contract sets quarterly payment. GST becomes due on the quarterly invoice or payment date.
Yes, when the agency buys the service in its own name and recharges it to the client.
Usually yes for media relations, if the client is abroad and pays in foreign exchange. Event services in India need a separate check.
As a separate project, by hours or a fixed fee, with the support period and team named, at 18% under SAC 998312.
A consultant with turnover up to ₹50 lakh can opt for the 6% services composition scheme, but corporate clients then lose input credit, and inter-state clients cannot be served, so most agencies stay in the regular scheme.
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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