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Payoneer or PayPal: What GST and the RBI's PR Purpose Code Mean for PR Agencies Getting Paid

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Editorial team, serviceexportguide.com
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Short answer

Public relations receipts are reported under purpose code P1006, business and management consultancy and public relations services.1 A GST-registered PR agency invoices exports without IGST under an LUT.23 From 1 October 2026 each export needs an Export Declaration Form (EDF).4 Payoneer prints the purpose code on every FIRA.5 PayPal charges 4.40% plus a fixed fee.6

Applies toRules involvedPlatforms comparedLast verified
PR agencies and independent PR consultants in India with foreign clientsIGST Act sections 2(6), 13 and 16, LUT2378; FEMA 2026 Regulations: EDF and nine-month realisation49; purpose code P10061Razorpay, Karbon Business, Skydo, Payoneer, PayPal61011121328 October 2026 (rules and published fees)414

1,000 USD = ₹94,243 at the reference rate for 13 November 2026 (European Central Bank data).

Estimated rupees received, on published fees

Sorted by estimated rupees received, highest first. Only providers that publish both their fee and their conversion markup for this currency and method can be estimated.

#Provider and routeBest forFee (+GST)MarkupYou receiveCost
1Karbon BusinessLowest estimated costBank transfer to a Karbon virtual USD accountUS bank transfers and marketplace payouts₹942plus GST, rate not stated0%₹93,131 to ₹93,3011.00 to 1.18%
2RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)Local transfers from the US, UK and eurozone₹1,000plus GST, rate not stated0%₹93,063 to ₹93,2431.06 to 1.25%
3WinvestaGlobal Collections Account, standard plan (up to 2,000 a month per currency)Local transfers with a published per-payment fee₹1,4350%₹92,8091.52%
4SkydoPayment link (InstaLinks) paid by ACH debitLocal bank transfers from major markets₹1,885plus GST, rate not stated0%₹92,019 to ₹92,3582.00 to 2.36%
5PayoneerLocal bank transfer to Payoneer receiving account detailsMarketplace payouts such as Amazon or Upwork₹0no GST stated1 to 4%₹90,473 to ₹93,3011.00 to 4.00%
6PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)Clients paying by card or PayPal balance₹4,175no GST stated3 to 4%₹86,465 to ₹87,3667.30 to 8.25%

Not estimated because pricing is not fully published: Cashfree Payments, Dodo Payments, PingPong, Stripe, Tazapay, TransFi, Wise.

Where a provider says GST applies to its fee but not at what rate, the range runs from no GST to 18%, the rate Skydo, Stripe and Winvesta state on their pages. Estimates use each provider's published fee, conversion markup, GST on fees and FIRA charge, checked 2026-10-28, against the reference rate. They exclude charges taken by intermediary banks and your own bank, and the rate a provider actually applies at the time of conversion. Check the provider's pricing page before you choose. The order is calculated only from these published numbers; no provider can pay to change its position, and there are no affiliate links.

PR agencies in India run media relations, press releases, launch campaigns and reputation work for startups and brands in the US, UK, Europe and the Gulf. Two rules decide how each foreign payment is reported: GST, which zero-rates qualifying exports, and the RBI purpose code the bank records, which for public relations is P1006.12 Payoneer and PayPal, the two providers named in the question, handle that code and the proof of receipt in different ways.521

Digital PR often sits alongside marketing, so international payments for digital marketing agencies is a useful companion. Confirm your structure with a chartered accountant (CA).

How do Payoneer and PayPal compare for PR agencies in India?

Payoneer suits PR agencies paid by bank transfer to receiving accounts or through marketplaces, and PayPal suits clients who pay by card or PayPal balance; PayPal's published fee and conversion charges are higher on a typical invoice.6132223 The table adds the three providers with the lowest estimated cost on a USD 2,000 receipt from published fees and is ordered by that estimate, cheapest first.101112

PlatformBest forFeeFX markupSettlementFIRARBI PA-CB statusSource
RazorpayLocal transfers from the US, UK and eurozone241% per MoneySaver bank transfer plus GST, with a flat fee of ₹1,000 below ₹1,00,000; international cards up to 3% plus GST1025Razorpay says 0% FX markup on MoneySaver bank transfers; card conversion markup not published1026T+1 for push bank transfers (ACH, FPS, SEPA, SWIFT); around T+5 business days for ACH debit Flash Links2427Foreign Inward Remittance Statement (FIRS) emailed within 24 hours after settlement for bank transfers2428Razorpay Payments Private Limited is listed as PA-CB for inward and outward transactions14Razorpay pricing and docs; RBI list10142425262728
Karbon BusinessUS bank transfers and marketplace payouts291% transaction fee, listed on Karbon's PayPal alternative page110% (freelancer page); 0.5% to 1.0% (PayPal alternative page)2911Karbon says 24 to 48 hours29FIRA for every transaction from an unnamed banking partner; cost not published29Not on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB1430Karbon pages and terms; RBI list11142930
SkydoLocal bank transfers from major markets31USD 19 plus GST up to USD 2,000; USD 29 plus GST from USD 2,001 to USD 10,000; 0.3% plus GST above USD 10,00012320% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)3334Skydo's terms say T+1 to T+3 business days, depending on currency and corridor34Free FIRA on every payment received, Skydo says3335Skydo Technologies Private Limited is listed as PA-CB-I and O, authorised 8 January 202614Skydo FAQs and terms; RBI list121432333435
PayoneerMarketplace payouts such as Amazon or Upwork22Payment request by card 2.90% + $0.49; ACH bank debit (US only) 1%; receiving-account fees are shown in your account131% to 4% of the amount when converted to INR on withdrawal, depending on region and volume13Within 24 hours (multi-currency account page); within 48 hours (pricing page)1336Free digital FIRA for each transaction from Payoneer's partner AD bank, within 24 to 72 hours5In-principle PA-CB authorisation on 22 January 2026; RBI lists the application as under process as of 16 October 2026; Payoneer also lists an RBI OPGSP registration373839Payoneer pricing, help and press pages; RBI status list51336373839
PayPalClients paying by card or PayPal balance234.40% plus a fixed fee (0.30 USD for USD) per international commercial transaction63.0% or 4.00% above the base exchange rate, depending on the conversion type6Up to 5 business days to reach the Indian bank account40Free weekly digital FIRA from February 2026; custom FIRA at 100 INR plus 18% GST per transaction18Listed as an existing PA-CB with in-principle authorisation granted, as on 16 October 202638PayPal fee, help and FIRA pages; RBI status list6183840

Purpose code handling differs: PayPal sets one default code at account setup, and Payoneer applies the code saved in your profile to every payment and prints it on the FIRA.521

Which RBI and GST rules apply to PR agencies?

The rules that apply to a PR agency paid from abroad are the IGST Act export test and place of supply rules, the intermediary provisions, the LUT procedure and the 2026 FEMA export regulations.347816

RuleBest for (who it applies to)Plain meaningSource
IGST Act section 2(6)Every PR agency billing a client located outside IndiaAll five export conditions must hold, including payment in convertible foreign exchange7CBIC7
IGST Act section 13(2)Remote media relations and communications workPlace of supply is the client's location unless a special rule applies8CBIC8
CBIC Circular 159/15/2021-GSTAgencies earning fees for arranging deals between two other partiesExplains the scope of intermediary services16CBIC16
Finance Act, 2026, section 157Agencies that were treated as intermediariesSection 13(8)(b) of the IGST Act omitted with effect from 30 March 202617Gazette17
IGST Act section 16 and LUTGST-registered agenciesZero-rated exports invoiced without IGST under an LUT for the financial year23CBIC, GST portal23
EDF and realisation, 2026 RegulationsEvery agency exporting from 1 October 2026File the EDF and collect payment within nine months of the invoice49RBI49

See intermediary services under GST for how the omission affects referral and placement fees.

Which purpose code applies to PR agencies?

Public relations receipts are reported under P1006, and related PR work can fall under P1007, P1016 or P1017.115 Receipt codes come from RBI A.P. (DIR Series) Circular No. 84 of 29 February 2012.41

CodeBest for (transaction type)Official RBI descriptionSource
P1006PR retainers, media relations, communications strategyBusiness and management consultancy and public relations servicesHDFC, DGFT115
P1007Paid advertising, sponsored content and trade fair workAdvertising, trade fair serviceHDFC, DGFT115
P1016Media audits, surveys and opinion pollingMarket research and public opinion polling serviceHDFC, DGFT115
P1017Publishing reports or printed collateral for a clientPublishing and printing servicesHDFC, DGFT115

DGFT maps business consulting services including public relations (SAC 998312) to P1006.15 The purpose code for consulting services page covers neighbouring codes.

Which option is cheapest at $500, $2,000 and $5,000?

The cheapest option for a PR agency depends on retainer size, because flat per-payment fees fall as a share of larger invoices while percentage fees do not.61012 The table below works out INR received at today's rate from published fees.

PlatformBest forINR on USD 2,000INR on USD 5,000INR on USD 10,000Cost on USD 5,000
SkydoMost INRTransfer to Skydo local account details or international SWIFT accountLocal bank transfers from major markets₹1,86,373₹4,67,991₹9,39,2060.68%
Karbon BusinessBank transfer to a Karbon virtual USD accountUS bank transfers and marketplace payouts₹1,86,262 to ₹1,86,601₹4,65,655 to ₹4,66,503₹9,31,311 to ₹9,33,0071.00 to 1.18%
RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)Local transfers from the US, UK and eurozone₹1,86,262 to ₹1,86,601₹4,65,655 to ₹4,66,503₹9,31,311 to ₹9,33,0071.00 to 1.18%
PayoneerLocal bank transfer to Payoneer receiving account detailsMarketplace payouts such as Amazon or Upwork₹1,80,947 to ₹1,86,601₹4,52,367 to ₹4,66,503₹9,04,734 to ₹9,33,0071.00 to 4.00%
PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)Clients paying by card or PayPal balance₹1,72,958 to ₹1,74,760₹4,32,436 to ₹4,36,940₹8,64,899 to ₹8,73,9087.27 to 8.23%

Ranked by INR received on USD 5,000. Reference rate: European Central Bank data for 13 November 2026. Fees, conversion markup, GST on fees and FIRA charges as published by each provider, checked 28 October 2026. Ranges appear where a provider publishes a range or does not state its GST rate. Intermediary bank charges are excluded. See the methodology.

For example, a $2,000 monthly retainer paid by bank transfer costs 1.00 to 1.18% with Razorpay's 1% MoneySaver fee plus GST and about 1.12% with Skydo's USD 19 plus GST.1012 Payoneer's conversion to INR costs 1% to 4% depending on region and volume.13 Through PayPal the same retainer costs about 7.28 to 8.24% once the 4.40% fee, 0.30 USD fixed fee and 3.0% or 4.00% conversion fee apply.6

What documents follow each payment?

Each foreign payment to a PR agency leaves a FIRA or similar record, and the agency adds an EDF, a self-certified e-BRC and an LUT-endorsed export invoice if registered.344243

DocumentBest forWhat it doesSource
FIRAMatching retainer payments to invoicesPayoneer issues a digital FIRA per transaction; PayPal a free weekly digital FIRA518Provider pages518
e-BRCGST refunds and export recordsSelf-certified on DGFT from the bank's inward remittance messages42DGFT42
EDFEvery agency exporting from 1 October 2026Filed within 30 days from the end of the invoice month, or on or before the payment date for non-software services4RBI4
LUTGST-registered agenciesZero-rated invoicing without IGST, deemed accepted on ARN generation344GST portal, CBIC344
Export invoiceRegistered agencies under an LUTRule 46 endorsement plus recipient's name, address and country43CBIC43

Payoneer notes that the e-FIRA or IRM in RBI's export data system is issued by the exporter's own bank, which may ask for the FIRA plus export documents.5 See EDF for service exporters.

What changes in 2026 for PR agencies?

The 2026 changes for PR agencies are the omission of the intermediary place of supply rule, the EDF for every service exporter, the nine-month realisation period and the PA-CB transaction cap.491745

  • Intermediary rule omitted: Section 13(8)(b) of the IGST Act no longer applies from 30 March 2026.17
  • EDF for all services: From 1 October 2026 every exporter of services files an EDF with its AD bank.4
  • Realisation period: Nine months from the invoice date, after the 15-month window ended on 5 June 2026.946
  • PA-CB cap: Each cross-border payment aggregator transaction is limited to ₹25 lakh.45
  • Payoneer status: Payoneer received in-principle PA-CB authorisation on 22 January 2026, and RBI listed its application as under process on 16 October 2026.3738
  • Income tax: The Income-tax Act, 2025 applies from 1 April 2026.47

The export of services checker tests a PR engagement against the five export conditions.

How did we verify this?

We checked this page against the sources below on 31 October 2026. Provider fees, conversion markups and RBI payment aggregator (PA-CB) status were checked on 28 October 2026. Rupee amounts use European Central Bank reference rates for 13 November 2026. Read our methodology or report an error.

  1. [1]HDFC Bank: Inward Remittance Purpose Codes (bank reproduction of the RBI list, checked 2026-10-28)
  2. [2]CBIC: IGST Act, 2017, section 16 (zero-rated supply)
  3. [3]GST portal: User guide, Furnishing of Letter of Undertaking (FORM GST RFD-11)
  4. [4]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB, amended up to 22 September 2026 (regulations 3, 4, 5, 6, 7, 13 and 19)
  5. [5]Payoneer Help Center, Digital FIRA FAQ (checked 2026-10-28)
  6. [6]PayPal India, PayPal Merchant Fees (page last updated 28 March 2024) (checked 2026-10-28)
  7. [7]CBIC: IGST Act, 2017, section 2 (definition of export of services, clause 6)
  8. [8]CBIC: IGST Act, 2017, section 13, sub-sections (2) and (4) (place of supply where supplier or recipient is outside India; immovable property) (checked 2026-10-31)
  9. [9]RBI: Notification No. FEMA 23(R)/(1)/2026-RB dated 22 September 2026, amending regulation 5 (realisation period)
  10. [10]Razorpay, Multi-Currency Account for International Bank Transfers (MoneySaver Export Account pricing) (checked 2026-10-28)
  11. [11]Karbon Business, PayPal Alternative comparison page (checked 2026-10-28)
  12. [12]Skydo FAQs, How much does Skydo charge? (checked 2026-10-28)
  13. [13]Payoneer India, Payoneer Fees (checked 2026-10-28)
  14. [14]RBI: Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, Payment Aggregators, list as on 16 October 2026 (checked 2026-10-28)
  15. [15]DGFT: Purpose Code and SAC Code Mapping, Version 1.0, 10 November 2023
  16. [16]CBIC: Circular No. 159/15/2021-GST (scope of intermediary services)
  17. [17]Finance Act, 2026, section 157 (omission of section 13(8)(b) of the IGST Act from 30 March 2026), Gazette of India
  18. [18]PayPal India, Foreign Inward Remittance Advise (FIRA) (checked 2026-10-28)
  19. [19]Income Tax Department: Income-tax Act, 2025 as amended by the Finance Act, 2026 (sections 58, 62(4), 156 and 202)
  20. [20]Income Tax Department: Income-tax Act, 2025, section 58 (presumptive taxation)
  21. [21]PayPal India Help, What is the Purpose Code? (checked 2026-10-28)
  22. [22]Payoneer, How to use Payoneer in India (last modified 18 September 2026, checked 2026-10-28)
  23. [23]PayPal India, User Agreement for PayPal Services (last updated 13 January 2025) (checked 2026-10-28)
  24. [24]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  25. [25]Razorpay, Pricing, International Payments and International Bank Transfers tabs (checked 2026-10-28)
  26. [26]Razorpay Docs, Currency Conversion (checked 2026-10-28)
  27. [27]Razorpay Docs, Flash Links (ACH Debit) (checked 2026-10-28)
  28. [28]Razorpay Docs, FIRS Automated Process (checked 2026-10-28)
  29. [29]Karbon Business, Karbon for Freelancers (checked 2026-10-28)
  30. [30]Karbon Forex Terms and Conditions, Interropac Private Limited (checked 2026-10-28)
  31. [31]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  32. [32]Skydo, home page fee table (checked 2026-10-28)
  33. [33]Skydo, Receive international payments as a freelancer in India (product page) (checked 2026-10-28)
  34. [34]Skydo, Terms of Use, last updated 9 April 2026 (checked 2026-10-28)
  35. [35]Skydo FAQs, What is accepted for GST filings and banks between FIRA and FIRC? (checked 2026-10-28)
  36. [36]Payoneer India, Multi-currency account page and FAQs (checked 2026-10-28)
  37. [37]Payoneer press release, Payoneer receives in-principle authorization as Cross-Border Payment Aggregator in India, 22 January 2026
  38. [38]RBI: Status of Applications received under the Payment and Settlement Systems Act, 2007, as on 16 October 2026 (checked 2026-10-28)
  39. [39]Payoneer India, Payoneer's multi-jurisdictional licenses (checked 2026-10-28)
  40. [40]PayPal India Help, How do I transfer funds to my bank account? (checked 2026-10-28)
  41. [41]RBI: A.P. (DIR Series) Circular No. 84 dated 29 February 2012, Compilation of R-Returns: Reporting under FETERS (purpose codes)
  42. [42]DGFT: eBRC system, self-certification of eBRC from bank inward remittance messages (IRMs), Trade Notice 33/2023-24 dated 10 November 2023 (checked 2026-10-28)
  43. [43]CBIC: CGST Rules, 2017, rule 46 (tax invoice, export endorsement)
  44. [44]CBIC: Circular No. 40/14/2018-GST (LUT deemed accepted on generation of ARN)
  45. [45]RBI: Master Direction on Regulation of Payment Aggregator dated 15 September 2025, paragraph 11(d) (transaction limit for PA-CB)
  46. [46]RBI: Notification No. FEMA 23(R)/(8)/2026-RB, realisation period restored to nine months from 5 June 2026
  47. [47]PIB: Income-tax Act, 2025 comes into force from 1 April 2026

Frequently asked questions

Is P1006 or P1007 the purpose code for a PR retainer?+

A PR retainer usually fits P1006, which RBI describes as business and management consultancy and public relations services. P1007, advertising, trade fair service, fits paid advertising and trade fair work. If one client pays for both, ask your bank whether to split the remittance so each part carries the matching code.115

Can a PR agency change the purpose code on Payoneer after a payment?+

Payoneer says the purpose code chosen in profile settings applies to every payment and appears on each FIRA, and it cannot be changed for payments already processed. A PR agency that set the wrong code should contact its bank about those payments and update the setting before the next one.5

Is media outreach for a foreign startup an export of services?+

Media outreach for a startup located outside India is an export of services when all five conditions in section 2(6) of the IGST Act hold, including a place of supply outside India and payment in convertible foreign exchange. For remote PR work the place of supply is generally the client's location under section 13(2).78

Do PR agencies pay GST on fees earned for arranging media deals?+

Fees for arranging a supply between two other parties can be intermediary services, which CBIC Circular 159/15/2021-GST explains. Section 13(8)(b) of the IGST Act, which placed intermediary services at the supplier's location, was omitted with effect from 30 March 2026, so check current treatment with a CA.1617

Does PayPal give PR agencies a FIRA for each client payment?+

PayPal issues a free weekly digital FIRA from February 2026, downloadable under Reports and then Tax for the last 12 months. A custom FIRA for a specific transaction costs 100 INR plus 18% GST each for up to 20 transactions, and PayPal says Citibank issues custom FIRAs.18

Is a PR consultant eligible for the 50% presumptive tax scheme?+

Section 62(4) of the Income-tax Act, 2025 lists professions such as technical consultancy, accountancy and legal work, and public relations is not named. A PR consultant should confirm with a chartered accountant whether the 50% scheme in section 58(2) can apply before using it.1920

This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.

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