Indian advertising and digital agencies with foreign clients declare their export invoices on one EDF a month, filed with the AD bank where the clients pay. The usual codes are SAC 998361 for advertising services and purpose code P1007 (advertising, trade fair, market research) on receipts, both to be confirmed. What makes agencies different is billing: retainers, campaign fees and, above all, media spend that flows through your invoice to Google, Meta or other platforms.
Key takeaways
- Retainers, campaign fees, creative production and performance marketing for foreign clients go on the monthly EDF as one row per invoice.
- SAC 998361 (advertising services) and purpose code P1007 are typical; market research may use 998371. Confirm both.
- Media spend you bill to the client needs careful thought on GST, place of supply and how you present it on the invoice. Settle this with your CA before you build your billing.
- The EDF is due within 30 days from the end of the invoice month, or on or before the date of payment for non-software services.
- Realise within 9 months of each invoice date.
Typical agency revenue lines
| Revenue line | EDF treatment | Likely SAC (confirm) |
|---|---|---|
| Monthly social media retainer | One row per monthly invoice | 998361 |
| Campaign concept and creative production | One row per invoice | 998361 |
| Performance marketing management fee | One row per invoice | 998361 |
| Media spend billed to client | Discuss with CA; depends on structure | Depends on structure |
| Market research or consumer surveys | One row per invoice | 998371 |
| Trade fair or event marketing support | One row per invoice | Confirm with CA |
Agency invoices often mix two or three of these. If a single invoice combines a fee and media spend, it is still one row on the EDF, but the GST and place-of-supply analysis may differ for each component.
The media spend question
This is where agencies most often go wrong, and it is mostly a GST and contract question rather than an EDF one.
If you buy media on the client's behalf, using the client's ad account and their card, and simply charge a management fee, your export is just the fee. Clean.
If you buy media in your own name on your own ad account and re-bill it with or without a markup, the media becomes part of what you supply. That raises questions about whether your services are being supplied to the foreign client in a way that qualifies as an export, whether any part looks like an intermediary service, and how input tax on the media is treated. The answers depend on contracts and facts.
Settle the structure with your CA before you set up billing. Our article on intermediary services and GST explains why the classification matters.
For the EDF itself, whatever you invoice to the foreign client and expect to receive goes in Part 2B: the invoice amount, with net realisable value reflecting what you expect to receive.
Worked example: Coral Bay Digital
Coral Bay Digital LLP in Mumbai runs campaigns for a hotel group in the UAE and a skincare brand in the UK.
October 2026 invoices:
| Invoice | Client | Description | Currency | Amount |
|---|---|---|---|---|
| CBD/EX/57 | UAE hotel group | Social media retainer, October | USD | 4,500 |
| CBD/EX/58 | UAE hotel group | Festive campaign creative production | USD | 6,200 |
| CBD/EX/59 | UK skincare brand | Performance marketing management fee | GBP | 3,800 |
Media for the UK client runs on the client's own ad account, so Coral Bay's invoice covers only its management fee. That keeps the export clean.
Coral Bay files one October EDF with three rows. Description column entries are specific ("Social media content and community management, October 2026" rather than "Marketing"). SAC 998361 on all three. At illustrative book rates (USD ₹84, GBP ₹110), the rupee total is ₹3,78,000 + ₹5,20,800 + ₹4,18,000 = ₹13,16,800.
Since these are services other than software, Coral Bay could submit on or before the date payment is received. The UAE client pays within 10 days, so Coral Bay files the EDF in the first week of November, which satisfies both rules. Deadline under the 30-day rule: 30 November 2026.
Each invoice is under ₹10 lakh, so the bank may close each EDPMS entry on Coral Bay's periodic realisation declaration.
Retainers billed in advance
Many agencies bill retainers at the start of the month. A November retainer invoiced on 1 November belongs on the November EDF, due 30 December 2026. If the client also pays in advance, show in Part 4 that the value has been received. If a retainer is cancelled mid-month after invoicing, issue a credit note and tell your bank. See our guide to retainer invoices for agencies.
Purpose codes and client payments
Ask your foreign clients to choose an advertising-related purpose code when they remit, or ask your bank to apply P1007 if the bank assigns it. Mismatched codes, such as a code suggesting a personal transfer or a software payment, cause questions at realisation and in GST refunds. If your bank's FIRA shows the wrong code, ask for correction promptly. Our purpose code correction letter is a ready format.
Realisation risks specific to agencies
- Disputed campaign results. A client unhappy with a campaign may delay payment. Your 9-month window still runs from the invoice date.
- Client-side agency changes. When a brand changes its marketing team, unpaid invoices can get lost. Chase early.
- Payments by the parent company. Larger brands may pay through a group entity. If someone other than the recipient will pay, fill the third-party fields (1.15 and 1.16) and note it in remarks.
If any invoice is approaching 9 months without payment, request an extension from your AD bank, with reasons, before the date passes.
This is general information, not legal or tax advice.
Frequently asked questions
Which SAC code do advertising agencies use for exports?
998361 (advertising services) is the usual code for agency fees and creative work. Market research may fall under 998371. Confirm with your CA, and keep the SAC on the invoice and in Part 2B identical.
What purpose code should foreign clients use when paying an agency?
P1007 covers advertising, trade fair and market research services and is commonly used. Ask your bank to confirm, and tell clients the code to quote where they choose it.
Does media spend I re-bill to the client go on the EDF?
Whatever you invoice to the foreign client goes on the EDF as part of that invoice. Whether re-billed media qualifies as an export for GST, and how to structure it, is a separate question to settle with your CA.
Can one EDF cover clients in different countries?
Yes. One EDF per month covers all service exports to one or more recipients. Each invoice is its own row with its own country.
When is the EDF due for an agency's monthly retainer?
Within 30 days from the end of the month of the invoice date. For non-software services, you may also submit on or before the date the payment is received.
Bottom line
Agencies file a simple monthly EDF once billing and codes are settled. Prepare yours on the free EDF form generator and look up codes with the SAC code finder.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.