In short
- Pay by bank transfer against a signed contract and a valid invoice, after collecting PAN and bank details. Avoid cash and personal wallets that leave no paper trail.
- Pay small creators once the post is verified live, and larger creators part on signing and part on go-live. The structures are in our payment terms guide.
- Section 194R puts 10% TDS on benefits such as kept products above ₹20,000 a year. For cash fees, sources conflict, so your CA must fix the section.
- Only a GST-registered creator should charge GST, and registration starts at ₹20 lakh of turnover. Many creator invoices carry none.
Pay influencers by bank transfer, against a signed contract and a valid invoice, once you have collected the creator's PAN and bank details and agreed with your CA which TDS and GST apply. Pay smaller creators after the post is verified live, and larger creators part on signing and part on go-live. Skip cash and personal wallets, which leave no paper trail.
This post covers the mechanics of how the money moves. Payment structures such as advances, milestones and holdbacks are in influencer payment terms in India, and the tax detail is in TDS 194R and GST on influencer payments. For the wider channel, read our complete guide to influencer marketing in India. Nothing here is tax advice, and every rule below should be confirmed with a chartered accountant.
Seven ways money can move
| Method | How it works | Good for | Watch for |
|---|---|---|---|
| Bank transfer (NEFT, IMPS, RTGS) | Transfer to the account named on the invoice | Almost everything | Match the account name to the invoice; keep the transaction reference |
| UPI | Transfer to a UPI ID or phone number | Small, quick payments | Same paperwork as any payment; check your bank's and company's limits and the name that appears before you confirm |
| Through an agency | You pay the agency one invoice; it pays each creator | Campaigns with many creators | Ask for proof of each creator payment |
| Through a creator platform | The platform may route or hold funds | Self-serve discovery | Read who invoices and who deducts tax; we have not reviewed any specific platform |
| Product (barter) | Goods or services in place of cash | Nano creators who want the product | A taxable benefit. See the barter collaboration guide |
| Commission | A share of tracked sales or a bounty per install | Performance deals | Pay after the returns window, with a sales statement behind each payout |
| Cash or personal wallets | Hand-to-hand or to a personal account | Nothing | No invoice or audit trail; ask your CA how it affects TDS and your own tax position |
What to collect before the first rupee
Payment stalls most often because paperwork is missing, not because money is. Ask for everything at contract stage.
| Item | Why you need it | Note |
|---|---|---|
| Signed contract | Fixes deliverables, fee, schedule, label and rights | See influencer contracts in India |
| PAN | TDS is deducted against it | The name should match the invoice. Ask your CA what to do if a creator has none |
| Tax invoice | Shows fee, GST if charged, dates and account details | Use our invoice template |
| Bank details in the invoicing name | Avoids paying a third party by mistake | A cancelled cheque or bank letter helps |
| GST number, if registered | Only registered creators should charge GST | Most are not, see below |
| Declaration for benefits in kind | A summary of the CBDT circular says to collect one for in-kind benefits | Ask your CA for the wording |
| Manager or agency details | If a manager invoices, you pay the entity named in the contract | Ask your CA which PAN the TDS follows |
When to pay, in one view
This is a summary. The full structures, with a holdback and clause wording, are in our payment terms guide.
- Nano and small micro creators: in full once the post is verified live with the right label.
- Mid-tier and larger creators: an advance on signing, the balance on go-live, against a refund clause.
- Retainers: monthly, in advance or in arrears, with the month's deliverables named.
- Commission: after the returns window, from a statement of tracked sales.
- Your promise: a window your finance team can meet, counted from a valid invoice or from verification. Creators remember a broken promise longer than a long window.
Say in the contract that you will verify within two working days of go-live, so the creator is not waiting on your inbox.
TDS: what we can say, and what to ask your CA
Benefits in kind. Section 194R of the Income-tax Act, 1961, effective 1 July 2022, puts 10 percent TDS on benefits or perquisites given to a resident in the course of business once the total in a financial year passes ₹20,000. Individuals and HUFs are exempt if their prior-year turnover is up to ₹1 crore from business or receipts are up to ₹50 lakh from a profession. A product returned after a shoot is not a benefit the creator keeps, and a kept product is valued at the brand's purchase price. This follows TaxGuru's summary of CBDT Circular 12 of 2022.
Cash fees. One booking-platform guide quotes 10 percent TDS on creator fees, but commentators disagree on the section, pointing to 194J or 194C as well as 194R. We could not resolve it. Have your CA fix the section, write it into the contract and apply it to every creator the same way.
The 2025 Act. The Income-tax Act 2025 came into force on 1 April 2026, per the Income Tax Department, and payments made from that date follow it. Tax blogs say TDS is now consolidated in section 393 and map 194R to section 393(1), but we have not seen the statute text, so confirm the mapping before quoting a section number.
Ask your CA four things: when to deduct, when to deposit, which return to file and what certificate to give the creator.
GST: only registered creators charge it
A creator must register for GST once annual turnover from services passes ₹20 lakh, or ₹10 lakh in special-category states, per CBIC's FAQ. One chartered accountant's guide puts the rate on influencer services at 18 percent under SAC 998361 and says turnover includes brand deals, AdSense, affiliate income and free products at market value (Tax Upadesh). In a Q1 2026 vendor survey covered by Campaign India, 15.2 percent of creators were registered as a business entity or GST individual, so many invoices carry no GST.
An unregistered creator should not charge it. If a creator quotes "plus GST", ask for the GST number and check it on the invoice. GST on free products is unsettled in our sources, so treat it as a CA question.
A payment run, step by step
| Week | Event | Brand pays the agency | Agency pays creators | TDS deposited |
|---|---|---|---|---|
| 0 | Plan approved, creators booked | ₹1,44,000 | None | None |
| 3 | Posts go live | ₹1,44,000 | None | None |
| 4 | Deliverables verified | None | 12 × ₹18,000 = ₹2,16,000 | 12 × ₹2,000 = ₹24,000, on the dates your CA sets |
The brand pays ₹2,88,000 in two instalments. Each creator receives ₹18,000 after TDS, and ₹24,000 goes to the government against the creators' PANs. If a creator is GST-registered, their invoice adds 18 percent, so a ₹20,000 fee becomes ₹23,600, and the creator receives ₹21,600 after TDS on the pre-GST fee, assuming your CA agrees with that treatment. The agency takes on the work of checking twelve invoices, twelve PANs and the verification of twelve posts.
What to keep
Keep a folder per campaign with the contract, each invoice, proof that each post went live and passed your checks, the bank reference for each payment, the TDS deposit proof and a running ledger of benefits per creator per financial year. Ask your CA how long to retain them. The ledger catches the moment a creator's products pass ₹20,000, which is easy to miss across several campaigns.
Mistakes that cost money
- Paying before the PAN arrives. It complicates deduction and your own filing.
- Paying a name that is not on the invoice. Friends, managers and wallets create disputes later.
- Treating "plus GST" as automatic. Only registered creators charge it.
- No definition of verified. Pay on a defined check, not on a promise.
- Forgetting products. A kit is a benefit as well as a gift.
- Letting the agency hold the float without proof. Ask for evidence of each creator payment.
What to do next
- Choose the method for each creator: bank transfer for most, an agency invoice for many.
- Add the paperwork list to your contract so it arrives with the signature.
- Take the section question on cash fees to your CA and write the answer down.
- Read the payment structures in influencer payment terms in India, and the sequencing of a first campaign in influencer marketing for beginners. The offers that bring creators to the table are in how to get influencers to promote your product.
In our process, creator payments run through us after deliverables are verified, with TDS handled, and you pay one invoice. Our gifting and seeding service runs product drops with tax and disclosure sorted. To see how it fits your campaign, read how we work or send a brief through the contact page. To size creator fees first, use the influencer cost calculator.
This is general information, not legal or tax advice.
Sources
- Summary of TDS section 194R FAQs (CBDT Circular 12 of 2022), TaxGuru (30 Jun 2022)
- Income-tax Act 2025 comes into force from 1 April 2026, Income Tax Department (1 Apr 2026)
- GST on influencers and content creators, Tax Upadesh (a chartered accountant's blog) (24 Feb 2026)
- Frequently asked questions on GST: registration threshold for services, CBIC (undated, accessed 31 Oct 2026)
- Kofluence report tracks creator economy's formal shift, Campaign India (21 May 2026)
- Influencer fees in India: complete pricing guide (taxes on top), Booking platform guide (low confidence) (20 Mar 2026)
Frequently asked questions
How do you pay an influencer in India?
By bank transfer (NEFT, IMPS or RTGS) to the account named on the creator's invoice, after a signed contract, the creator's PAN and any TDS your CA says applies. UPI works for small amounts. Barter and commission are other forms. Avoid cash and personal wallets with no invoice. See influencer payment terms in India.
Should I pay influencers in advance?
Only when the creator is holding dates or paying for production, and only against a signed contract with a refund clause. Smaller creators are usually paid in full once the post is verified live. A full advance to a new creator leaves you no hold over delivery. See our guide to influencer contracts in India.
Do I have to deduct TDS when paying an influencer?
On benefits such as kept products above ₹20,000 a year, section 194R applies at 10 percent, unless you are an individual or HUF below the turnover limits. On cash fees the section is unresolved in our sources, so ask your CA. Since 1 April 2026 the Income-tax Act 2025 applies. See TDS 194R and GST on influencer payments.
Do influencers charge GST?
Only if registered. A creator must register for GST once annual turnover passes ₹20 lakh, or ₹10 lakh in special-category states, and then charges 18 percent on services. Below that, the invoice should carry no GST. A survey found only 15.2 percent of creators registered as a business or GST individual. This is general information, not tax advice.
What documents do I need before paying an influencer?
A signed contract, the creator's PAN, a valid invoice, bank details in the name on the invoice and, if registered, a GST number. For benefits in kind, collect a declaration of value. Keep proof that the post went live and was verified. See our influencer invoice template for the fields.
How do payments work when I use an agency?
You pay the agency, and the agency pays each creator. In our process, brands typically pay half when the plan is approved and creators are booked and the balance when the campaign goes live, and creators are paid after deliverables are verified, with TDS handled. See our pricing page.