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PayPal, Wise or Payoneer: What GST and the RBI's Advertising Purpose Code Mean for Digital Marketing Agencies

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Editorial team, serviceexportguide.com
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Short answer

Marketing services an Indian agency supplies to a client abroad are usually a zero-rated export under sections 2(6) and 16 of the IGST Act.1214 RBI's advertising purpose code is P1007, while P0804 covers computer and software maintenance.910 PayPal, Wise and Payoneer each issue a FIRA or e-FIRC in 2026.354042 From 1 October 2026 every invoice needs an EDF.1

Applies toRules involvedPlatforms comparedLast verified
Indian digital marketing agencies paid by clients outside India12RBI purpose codes (Circular No. 84 of 2012); IGST Act sections 2(6), 13(2) and 16; CGST rule 96A; FEMA Export and Import Regulations, 2026; RBI PA Master Direction15812131415Razorpay, Karbon Business, Skydo, Payoneer, PayPal, Wise23262933384231 October 2026

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.

A Gurugram performance marketing agency running Google Ads for a Melbourne clinic, or an Ahmedabad social media team managing accounts for a Toronto restaurant chain, is exporting a marketing service. The client may pay through PayPal, Wise or Payoneer, but GST and RBI treat the payment the same way, and the bank records it under RBI's advertising purpose code.912

This page compares those three with the lowest-cost providers on published fees and clears up a common purpose code mix-up. The full persona guide is international payments for digital marketing agencies. Confirm your set-up with a chartered accountant (CA).

How do PayPal, Wise and Payoneer compare for digital marketing agencies?

PayPal, Wise and Payoneer compare for digital marketing agencies mainly on cost: PayPal publishes 4.40% plus a fixed fee and a 3.0% or 4.00% conversion spread, Payoneer a 1% to 4% INR withdrawal fee, and Wise a 2 USD equivalent per INR transfer (India help article; its India receive pricing page describes a free e-FIRC).33384243 Razorpay, Karbon Business and Skydo are the three lowest-cost providers for a $2,000 USD receipt on published fees.232729

The table is sorted by estimated cost on a $2,000 USD receipt, cheapest first; Wise follows because it publishes no INR conversion percentage.43

PlatformBest forFeeFX markupSettlementFIRARBI PA-CB statusSource
RazorpayLocal transfers from the US, UK and eurozoneMoneySaver bank transfer 1%, flat ₹1,000 below ₹1,00,000; GST applies0% on MoneySaver transfersT+1 for push bank transfersFIRS emailed within 24 hours of settlementAuthorised PA-CB, inward and outward62324
Karbon BusinessUS bank transfers and marketplace payouts1% transaction fee listed on its PayPal comparison page0% (freelancer page); 0.5% to 1.0% (PayPal alternative page)24 to 48 hoursFIRA for every transaction from an unnamed partner bankNot on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB6262728
SkydoLocal bank transfers from major marketsUSD 19 + GST up to USD 2,000; USD 29 + GST to USD 10,000; 0.3% + GST above0% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)Within 24 hours (product page); T+1 to T+3 business days (terms)Free FIRA on every paymentAuthorised PA-CB, inward and outward, 8 January 2026629303145
PayoneerMarketplace payouts such as Amazon or UpworkFree to receive (multi-currency account page); fixed fee or 1% for non-local currencies (pricing page); card payment request 2.90% + $0.49INR withdrawal 1% to 4%, shown in the accountWithin 24 hours (multi-currency account page); within 48 hours (pricing page)Free digital FIRA per transaction from a partner AD bankIn-principle PA-CB authorisation 22 January 2026; not on RBI's authorised list of 16 October 202673334353637
PayPalClients paying by card or PayPal balance4.40% plus a fixed fee, for example 0.30 USD3.0% or 4.00% above the base rateUp to 5 business days to the bankFree weekly digital FIRA from February 2026In-principle authorisation as an existing PA-CB; not on RBI's authorised list of 16 October 2026738394041
WiseBank transfers to local account detailsEquivalent of 2 USD per transfer to the INR account (help article); free e-FIRC (receive pricing page); 18% GST on Wise feesMid-market rate plus a currency-dependent fee; no INR percentage publishedINR in 1 to 2 days after Wise receives fundse-FIRC per transfer within 3 working daysAuthorised PA-CB, inward, 12 March 20266424344

Agencies on monthly retainers from established clients usually suit local account details; Razorpay's MoneySaver purpose code list includes P1007, and Skydo says it supports 37 purpose codes.2532

Which RBI and GST rules apply to digital marketing agencies?

Digital marketing agencies paid from abroad follow the IGST Act for GST and the FEMA (Export and Import of Goods and Services) Regulations, 2026 (the 2026 Regulations) for the foreign exchange.112 The place of supply for remotely delivered marketing is usually the client's location under section 13(2).13

RuleBest for (who it applies to)Plain meaningSource
IGST Act section 2(6)Every agency billing a client abroadFive conditions, including payment in convertible foreign exchange, make the supply an export12
IGST Act section 13(2)Remote campaign managementPlace of supply is the recipient's location by default13
IGST Act section 16 and FORM GST RFD-11GST-registered agenciesExports are zero-rated; an LUT allows invoices without IGST1416
CGST rule 46Every export invoice under an LUTCarries the endorsement for supply under a Letter of Undertaking without payment of integrated tax18
CGST rule 96A(1)(b)Agencies under an LUTIGST with interest if payment is not received within one year or the FEMA period, whichever is later15
2026 Regulations, regulations 3 to 5Every agency from 1 October 2026EDF within 30 days from the end of the invoice month; realisation within nine months12
PA Master Direction, paragraph 11(d)Agencies paid through a PA-CB₹25 lakh maximum per transaction5

An agency earning referral commission from a foreign ad-tech tool should note that section 13(8)(b) of the IGST Act, the intermediary place of supply rule, was omitted from 30 March 2026.19 Paying for foreign tools may also bring reverse charge on imported SaaS tools.

Which purpose code applies to a digital marketing agency?

A digital marketing agency usually reports receipts under P1007, "Advertising, trade fair service", which is RBI's advertising purpose code.910 P0804 is sometimes quoted as an advertising code, but RBI's list describes it as "Repair and maintenance of computer and software".910

CodeBest for (transaction type)Official RBI descriptionSource
P1007Paid media management, SEO, social media and campaignsAdvertising, trade fair service910
P1016Audience research and surveysMarket research and public opinion polling service910
P1006Marketing strategy consulting and PRBusiness and management consultancy and public relations services910
P0802Website and app builds sold with a campaignSoftware consultancy/implementation (other than those covered in SOFTEX form)910

The codes come from RBI Circular No. 84 of 29 February 2012.8 See purpose code for digital marketing services and the P1007 purpose code page.

Which option is cheapest for a digital agency at $500, $2,000 and $5,000?

On published fees, local bank transfer providers cost a digital agency the least at $2,000 and $5,000, and PayPal costs the most among providers with full published pricing.232938 The table below calculates rupees received at today's rate.

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%

Not estimated because pricing for USD is not fully published: Wise.

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, Skydo's USD 29 fee is 0.58% of a $5,000 retainer before GST, and Razorpay's MoneySaver fee is 1% before GST at that size.2329 PayPal's 4.40% plus 0.30 USD on a $5,000 retainer is 4.406% before the 3.0% or 4.00% conversion spread.38

At retainer sizes, the gap between percentage and flat-fee pricing widens as the invoice grows.

What documents follow each payment to a digital marketing agency?

Each payment to a digital marketing agency should leave a FIRA or e-FIRC, an e-BRC, an EDF and an invoice under the agency's LUT.11116354042

DocumentBest forWho issues it and whenSource
FIRA or e-FIRCProof of the foreign credit and its purpose codePayPal weekly; Payoneer per transaction; Wise per transfer; Skydo per payment31354042
e-BRCGST refund recordsSelf-generated on the DGFT portal from the bank's inward remittance message11
EDFEvery invoice from 1 October 2026Filed with the AD bank within 30 days from the end of the invoice month, or by the payment date for non-software services1
LUTRegistered agenciesFORM GST RFD-11 for each financial year1617

The PA-CB must give the AD bank the documents or information the exporter needs to close the export entry.5 See FIRC vs FIRA vs e-BRC.

What changes in 2026 for digital marketing agencies?

For digital marketing agencies, 2026 brought the 2026 Regulations from 1 October 2026, an EDF for every service export and a nine-month realisation period.12

  • New regulations: The 2026 Regulations replaced the 2015 export regulations.14
  • Intermediary rule: Section 13(8)(b) of the IGST Act was omitted from 30 March 2026.19
  • Aggregators: Skydo was authorised as a PA-CB on 8 January 2026 and Wise on 12 March 2026; Payoneer received in-principle authorisation on 22 January 2026.637
  • FIRA: PayPal began a free weekly digital FIRA in February 2026.40
  • Income tax: The Income-tax Act, 2025 applies from 1 April 2026.21
  • GST Council: The 8 October 2026 recommendation to omit condition (v) of section 2(6) is not yet law.20

Ask your bank how unpaid invoices raised before 1 October 2026 are tracked.1

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]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, FEMA 23(R)/2026-RB, amended up to 22 September 2026, regulations 2, 3, 4, 5 and 19
  2. [2]RBI: Notification FEMA 23(R)/(1)/2026-RB dated 22 September 2026, amending regulation 5 (realisation period)
  3. [3]RBI: A.P. (DIR Series) Circular No. 20 dated 16 January 2026 (supersedes the SOFTEX circulars from 1 October 2026)
  4. [4]RBI: Press release on the FEMA (Export and Import of Goods and Services) Regulations, 2026 and Directions, 16 January 2026
  5. [5]RBI: Master Direction on Regulation of Payment Aggregator, 15 September 2025, paragraphs 11(d), 11(h) and 19 (checked 2026-10-31)
  6. [6]RBI: Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, Payment Aggregators list dated 16 October 2026 (checked 2026-10-28)
  7. [7]RBI: Status of Applications received under the Payment and Settlement Systems Act, 2007, as on 16.10.2026 (checked 2026-10-28)
  8. [8]RBI: A.P. (DIR Series) Circular No. 84 dated 29 February 2012, Compilation of R-Returns: Reporting under FETERS (revised purpose codes)
  9. [9]HDFC Bank: Inward Remittance Purpose Codes (bank reproduction of the RBI list, checked 2026-10-28)
  10. [10]DGFT: Purpose Code and SAC Code Mapping, Version 1.0, 10 November 2023 (reproduces RBI receipt code descriptions)
  11. [11]DGFT: eBRC system, self-certification of eBRC from bank inward remittance messages (IRMs), Trade Notice 33/2023-24 dated 10 November 2023
  12. [12]CBIC: IGST Act, 2017, section 2(6) (export of services)
  13. [13]CBIC: IGST Act, 2017, section 13 (place of supply where supplier or recipient is outside India)
  14. [14]CBIC: IGST Act, 2017, section 16 (zero-rated supply)
  15. [15]CBIC: CGST Rules, 2017, rule 96A (export under bond or Letter of Undertaking), clause (1)(b) as substituted by Notification No. 12/2024-Central Tax, 10 July 2024
  16. [16]GST portal user guide: Furnishing of Letter of Undertaking (FORM GST RFD-11)
  17. [17]CBIC: Circular No. 40/14/2018-GST (LUT deemed accepted on acknowledgement)
  18. [18]CBIC: CGST Rules, 2017, rule 46 (tax invoice, export endorsement)
  19. [19]Finance Act, 2026, section 157 (omission of section 13(8)(b) of the IGST Act from 30 March 2026), Gazette of India
  20. [20]GST Council: Press release, 57th meeting, 8 October 2026
  21. [21]PIB: Income-tax Act, 2025 comes into force from 1 April 2026
  22. [22]Income Tax Department: Income-tax Act, 2025, section 62 (specified profession, sub-section (4))
  23. [23]Razorpay, Multi-Currency Account for International Bank Transfers (MoneySaver Export Account pricing) (checked 2026-10-28)
  24. [24]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  25. [25]Razorpay Docs, About Purpose Codes (checked 2026-10-28)
  26. [26]Karbon Business, Karbon for Freelancers (checked 2026-10-28)
  27. [27]Karbon Business, PayPal Alternative comparison page (checked 2026-10-28)
  28. [28]Karbon Forex Terms and Conditions, Interropac Private Limited (checked 2026-10-28)
  29. [29]Skydo FAQs, How much does Skydo charge? (checked 2026-10-28)
  30. [30]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  31. [31]Skydo, Receive international payments as a freelancer in India (product page) (checked 2026-10-28)
  32. [32]Skydo FAQs, Which purpose codes are accepted using Skydo? (checked 2026-10-28)
  33. [33]Payoneer India, Payoneer Fees (checked 2026-10-28)
  34. [34]Payoneer India, Multi-currency account page and FAQs (checked 2026-10-28)
  35. [35]Payoneer Help Center, Digital FIRA FAQ (checked 2026-10-28)
  36. [36]Payoneer, How to use Payoneer in India (last modified 18 September 2026, 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]PayPal India, PayPal Merchant Fees (page last updated 28 March 2024) (checked 2026-10-28)
  39. [39]PayPal India, User Agreement for PayPal Services (last updated 13 January 2025) (checked 2026-10-28)
  40. [40]PayPal India, Foreign Inward Remittance Advise (FIRA) (checked 2026-10-28)
  41. [41]PayPal India Help, How do I transfer funds to my bank account? (checked 2026-10-28)
  42. [42]Wise Help Centre, Receiving payments for Indian businesses (checked 2026-10-28)
  43. [43]Wise India, Fees for getting paid (Wise Business receive pricing) (checked 2026-10-28)
  44. [44]Wise India site, Wise Business pricing, fees at a glance (checked 2026-10-28)
  45. [45]Skydo, Terms of Use, last updated 9 April 2026 (checked 2026-10-28)

Frequently asked questions

Is P0804 the purpose code for advertising services in India?+

P0804 is not the advertising code. RBI's receipt list describes P0804 as "Repair and maintenance of computer and software". Advertising is P1007, "Advertising, trade fair service", from the revised purpose codes in RBI A.P. (DIR Series) Circular No. 84 of 29 February 2012. Market research has its own code, P1016.8910

Do digital marketing agencies need SOFTEX for foreign payments?+

Digital marketing agencies do not file SOFTEX forms. RBI Circular No. 20 of 16 January 2026 superseded the SOFTEX circulars from 1 October 2026, and every service exporter, including a marketing agency, now files an Export Declaration Form with its AD bank under the FEMA 2026 Regulations.13

Should client ad spend go on a digital agency's export invoice?+

Client ad spend belongs on the export invoice only if the agency buys the media in its own name and resells it as part of its service. Money paid purely on the client's behalf is often billed separately as a reimbursement. The two are treated differently, so agree the approach with a chartered accountant before billing.

Can a digital agency receive a large retainer through Wise or PayPal?+

Wise publishes a maximum of ₹25 lakh or equivalent per transaction for Indian businesses, matching RBI's cap for payment aggregators. PayPal's India user agreement treats receiving more than USD 10,000 per transaction for a product or service as restricted. Larger retainers usually go by bank wire to the agency's AD bank.53942

Does a digital marketing agency in India pay GST on services for a UK client?+

A digital marketing agency does not charge GST to a UK client when the supply is an export of services under section 2(6) of the IGST Act. Exports are zero-rated, and a registered agency invoices without IGST under an LUT filed in FORM GST RFD-11 for the financial year.121416

How quickly does Payoneer pay a digital agency in INR?+

Payoneer's multi-currency account page says it withdraws to an Indian bank account within 24 hours of receipt and its pricing page says within 48 hours, with an INR withdrawal fee of 1% to 4% that depends on region and volume and is shown in the account.3433 Payoneer issues a free digital FIRA for each transaction through its partner AD bank.333435

Is digital marketing a specified profession for presumptive tax?+

Digital marketing is not named in section 62(4) of the Income-tax Act, 2025, which lists legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, information technology and company secretary work, plus notified professions. Agencies should confirm their tax scheme for tax year 2026-27 with a CA.2122

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.

Keep reading

Profession

How should a digital marketing agency in India receive payments from foreign clients?

How Indian digital marketing agencies get paid by foreign clients: export rules, intermediary and ad spend traps, purpose codes, fee types, GST LUT and tax.

Purpose codes

Which purpose code should a digital marketing agency or freelancer use?

Which RBI purpose code fits digital marketing exports: P1007 for advertising, P1006 for marketing strategy and PR, P1016 for market research, P1099 for brand promotion.

Purpose codes

What is purpose code P1007?

P1007 is the RBI receipt purpose code for advertising and trade fair services. Which agencies and marketers use it, and how it differs from P1016 and P1006.

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Do you pay GST under reverse charge on foreign SaaS tools and services?

When an Indian freelancer or agency pays IGST under reverse charge on foreign software subscriptions and services, and when the foreign supplier charges GST instead.

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How do you choose a payment platform for an agency in India?

What Indian agencies should compare when collecting from foreign clients: entity eligibility, invoice limits, purpose codes, fees on large invoices and FIRA.