What GST, FIRC and PayPal Fees Mean for Advertising Agencies Getting Paid from Abroad

Platforms named in the question are shown alongside the 2 highest payouts among the platforms this site covers, ranked by the INR received on a $5,000 invoice. Fees were checked on 30 Sept 2026.

An advertising agency billing a foreign client is an exporter of services under the FEMA Export and Import Regulations, 2026, in force from 1 October 2026. GST treats the same work as a zero-rated export when all five conditions in IGST Act section 2(6) are met. Under section 16(3) the agency can supply without paying IGST under a bond or LUT and claim a refund of unused input tax credit. These rules apply whether the client pays through PayPal or a bank transfer.

P1007 is the RBI purpose code that names advertising, with the description "Advertising, trade fair service" in the FETERS purpose code list. Market research billed on its own may fit P1016, and PR or brand consulting may fit P1006. P0804 means "Repair and maintenance of computer and software" and does not describe advertising. RBI does not map codes to agency work, so confirm the code with your AD bank, and see the P1007 purpose code.

Each row applies the platform's published fee, FX markup and 18% GST on the fee to the XE mid-market rate for 3 Nov 2026. Platforms without full published pricing are not included.

For example, on a $2,000 invoice Skydo pays about ₹1,87,385 and PayPal about ₹1,74,202 at today's reference rate, a difference of ₹13,183.

Each foreign payment to an advertising agency needs records that prove the export for both FEMA and GST. The LUT comes before the first invoice, each invoice carries the export endorsement in CGST Rule 46, and the EDF follows within 30 days of the invoice month end. A bank certificate and an e-BRC then confirm the money arrived, and CGST Rule 89(2)(c) asks for BRCs or FIRCs in a refund claim for export of services.

In 2026 advertising agencies move to a new FEMA export framework and a new income tax law. The FEMA Export and Import Regulations, 2026 apply from 1 October 2026, and RBI Circular No. 20 supersedes the old Master Direction on exports from that date. The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026.

• New framework: From 1 October 2026, Circular No. 20 paragraph 4 supersedes the Master Direction on Export of Goods and Services and the circulars listed in its Annex. See what changed in the FEMA export rules.
• EDF: Service exporters file an EDF within 30 days from the end of the invoice month under Regulation 3(2), and one EDF may cover a whole month. See the EDF form.
• Realisation: Regulation 5(1)(a) sets nine months from the invoice date, or twelve months for rupee invoicing or settlement. See export realisation period.
• Intermediary: CBIC's text of IGST Act section 13(8) shows clause (b) as omitted by section 157 of the Finance Act, 2026. That clause set the place of supply for intermediary services. Agencies that arrange media buys for foreign clients should confirm the date it applies with a GST adviser.
• Income tax: The Income-tax Act, 1961 was repealed on 1 April 2026. Income from FY 2026-27 onwards is assessed under the 2025 Act as tax year 2026-27, while earlier years stay under the old Act.

Every rule is linked to its official source below with the date it was checked. Platform figures come from each platform's own pages; the full method is on the methodology page.

1. RBI Notification No. FEMA 23(R)/2026-RB: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (amended up to September 22, 2026), Regulations 1(2), 2(1)(f)(ii), 3(2)(a) and (b), 4(2) proviso, 5(1)(a) and provisos, 18(2) (checked 6 Oct 2026)
2. RBI A.P. (DIR Series) Circular No. 20 dated January 16, 2026: Export and Import of Goods and Services, Paragraph 4 and Annex A (checked 6 Oct 2026)
3. RBI: FETERS guidelines and purpose code list (Annex to A.P. (DIR Series) Circular No. 84), Receipt purpose codes P0804, P1006, P1007, P1016, P1099, P1101 (checked 6 Oct 2026)
4. RBI A.P. (DIR Series) Circular No. 84 dated February 29, 2012: Compilation of R-Returns, Reporting under FETERS, Paragraph 3 (checked 6 Oct 2026)
5. IGST Act, 2017, Section 2: Definitions, Section 2(6): export of services (checked 6 Oct 2026)
6. IGST Act, 2017, Section 13: Place of supply where supplier or recipient is outside India, Section 13(2); 13(8)(b) omitted by section 157 of the Finance Act, 2026 (checked 6 Oct 2026)
7. IGST Act, 2017, Section 16: Zero rated supply, Section 16(1)(a) and 16(3) (checked 6 Oct 2026)
8. CGST Rules, 2017, Rule 96A: Export of goods or services under bond or Letter of Undertaking, Rule 96A(1) and 96A(1)(b) (checked 6 Oct 2026)
9. CGST Rules, 2017, Rule 89: Application for refund, Rule 89(2)(c) (checked 6 Oct 2026)
10. CGST Rules, 2017, Rule 46: Tax invoice, Proviso on export invoice endorsement (checked 6 Oct 2026)
11. GST Portal user manual: Furnishing of Letter of Undertaking (FORM GST RFD-11), Steps 3 and 4 (checked 6 Oct 2026)
12. DGFT FAQs on Self-Generation of eBRC (Version 1.0, March 2024), Q1, Q2, Q10 (checked 6 Oct 2026)
13. Income Tax Department: Objective and scope of the New Act (Income Tax Act 2025 FAQs), FAQs 2, 7 and 9 (checked 6 Oct 2026)
14. Skydo homepage (pricing and fee calculator), Know what you pay; calculator showing GST 18% of transaction fee (checked 6 Oct 2026)
15. Razorpay MoneySaver Export Account (International Bank Transfers) pricing, Standard Plan: 0% FX markup, 1% fee, FlashLinks 2%, GST applicable, flat fee of INR 1,000 on transactions below INR 1,00,000, setup and AMC INR 0 (checked 6 Oct 2026)
16. PayPal India Merchant Fees, Receiving international transactions; Currency Conversions (3.0% converting balance and payments received; 4.00% all other cases); Withdrawals Out of PayPal; Dispute Fees; Other Fees (Last Updated 28 March 2024) (checked 6 Oct 2026)