GST Invoicing & Milestone Billing for Indian Agencies
Keep monthly client billing and project payments in view.
Lekhiva is built for small design, marketing and web-development agencies that want a clearer way to organise invoices, unpaid balances and the records their CA asks for every month. The examples below show the workflow.
Three billing situations, one client record
Prepare the next retainer invoice
Keep the service period, agreed fee and billing date together so you can see which monthly invoices need preparing.
Know what is ready to bill
Keep an agreed website or design milestone visible alongside its invoice and payment deadline.
Pick up the conversation
Record a part payment, note a promised payment date, and see the remaining balance before following up.
Retainers and milestones without a spreadsheet
Most agencies run both models at once: two clients on monthly retainers, one in the middle of a three-milestone website build, and a one-off job from a referral. The failure mode is the same everywhere — the retainer invoice goes out late because nobody noticed the month ticked over, or a milestone is delivered but not billed. Keeping every engagement's billing basis, next invoice and balance in one client record is the fix. Start the engagement with a labelled proforma for the agreed scope, and convert the accepted version's details into the invoice.
Out-of-state clients: expect IGST
Agencies routinely serve clients in other states. When your registered state and the place of supply differ, the supply is generally inter-state and the invoice shows IGST for the full rate, instead of the CGST + SGST split used for local clients. Show the place of supply and state on the invoice. The CGST, SGST and IGST explainer covers the decision path and what charging the wrong head costs you.
When the client's payment is short: TDS
Business clients commonly deduct TDS — often 10% under section 194J on professional or technical fees — so a ₹1,00,000 invoice may arrive as ₹90,000. That difference is not an overdue balance to chase. Record the receipt against the invoice, note the TDS separately, and reconcile it with Form 26AS/AIS. Agencies that mix these up either harass clients for money that isn't owed or silently lose track of tax credits they have already earned.
An example: a website milestone payment
A client has a ₹29,500 invoice and pays ₹10,000. The remaining balance is ₹19,500. In Lekhiva, the team can record that payment and a note that the client expects to pay the balance on Friday. The next follow-up starts with that context, and the reminder generator drafts the message with the reconciled balance.
Vendor bills and the monthly review
Sales invoices are half the picture; your CA also needs the hosting invoices, contractor bills and software subscriptions. Keep vendor bills alongside sales in the same records, then connect your CA to what you approve — their work board and document requests replace the month-end email thread of attachments. Invoice preparation, payment tracking, expenses and accounting are part of the app; confirm tax treatment with your accountant. This page does not promise GST return filing or bank integrations — see the product overview for what is included.
What you can use today, free
Use the free GST calculator, the GST invoice guide, the free GST invoice generator and the monthly records checklist. Working independently? See our freelancer and consultant workflow.
Start with your agency
Sign up free and add your first client. Business plan benefits are free until 31 December 2026; see pricing for the plans after that. See pricing for the plans.
Start freeThis page is general information, not tax advice — confirm GST and TDS treatment for your agency with a qualified professional.
Frequently asked questions
Can Lekhiva handle both retainers and project milestones?
Yes. Monthly retainer invoices and one-off milestone invoices live in the same client record, each with its own payments and balance. You see per-client what is billed, received and still due, instead of reconstructing it from spreadsheets.
Which GST applies when our client is in another state?
Generally IGST. When your agency's registered state and the place of supply differ, the supply is inter-state and the full rate is charged as IGST instead of the CGST + SGST split. Show the place of supply on the invoice. See our CGST/SGST/IGST explainer for the details.
Why did the client pay less than the invoice total?
Business clients commonly deduct TDS on professional or technical fees under section 194J before paying. The deduction is not an unpaid balance — it is credited against your PAN and visible in Form 26AS/AIS. Record the receipt and the TDS separately so your balances stay true.
Can our CA see the agency's books?
Yes, with your approval. You invite your CA, choose what they can access, and they work from the same records with a free seat. You can withdraw access at any time.