PayPal or Wise: What GST and LUT Mean for Freelance SEO Specialists Getting Paid
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
Freelance SEO specialists paid through PayPal or Wise in 2026 follow the same GST and RBI rules. A registered freelancer files an LUT under CGST Rule 96A to bill foreign clients without IGST. The FEMA Export and Import Regulations, 2026 require realisation within nine months. The AD bank reports each receipt with an RBI purpose code.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian freelance SEO specialists and consultants who bill clients located outside India for SEO, content and search marketing work | FEMA (Export and Import of Goods and Services) Regulations, 2026, RBI A.P. (DIR Series) Circular No. 20 of 2026, RBI FETERS purpose codes, IGST Act s.2(6), s.13(2) and s.16, CGST Act s.22 and s.24, CGST Rules 46, 89 and 96A, CBIC Circular 8/8/2017-GST | Skydo, Razorpay, Wise Business, PayPal | 6 Oct 2026 |
How do PayPal and Wise compare for freelance SEO specialists getting paid from abroad?
Platforms named in the question are shown alongside the 2 highest payouts among the platforms this site covers, ranked by the INR received on a $5,000 invoice. Fees were checked on 30 Sept 2026.
| Platform | Best for | Fee | FX markup | Settlement | FIRA | RBI PA-CB status | INR on $5,000 | Source |
|---|---|---|---|---|---|---|---|---|
| Skydo | Indian freelancers and exporters receiving mid to large B2B invoices | $19 up to $2,000, $29 to $10,000, 0.3% above + GST | States zero FX margin at live rate | States under 24 hours; FAQ timelines vary by rail | States instant, free FIRA per payment | RBI authorised PA-CB Inward and Outward; on RBI list | ₹4,70,098 | Skydo pricing (checked 6 Oct 2026) |
| Razorpay | Indian businesses and freelancers on Razorpay invoicing foreign clients | 1% per bank transfer (Rs 1,000 flat below Rs 1,00,000) + GST | States 0% markup on MoneySaver at live rate | States 1 day (T+1 after invoice shared) | FIRS within 24 hours of settlement; no charge listed | RBI authorised PA-CB inward and outward, plus PA-O | ₹4,67,752 | Razorpay pricing (checked 6 Oct 2026) |
| Wise Business | Freelancers and small exporters wanting multi-currency local accounts and eFIRC | Calculator: 1.6% + $2 per payment + 18% GST | Mid-market rate; cost is the 1.6% conversion fee | States under 90 minutes in business hours | eFIRC per transfer, 2 USD + 18% GST | States in-principle PA-CB approval; not found on RBI page | ₹4,64,350 | Wise Business pricing (checked 6 Oct 2026) |
| PayPal | Card and PayPal-wallet payments from overseas PayPal buyers | 4.40% + USD 0.30 per international payment; fixed fee varies | 3.0% above PayPal's base rate on conversion | Not confirmed | Free weekly FIRA; custom Rs 100 + 18% GST each | PA-CB in-principle authorisation granted; final not confirmed | ₹4,35,154 | PayPal pricing (checked 6 Oct 2026) |
Which RBI and GST rules apply to freelance SEO specialists getting paid from abroad?
A freelance SEO specialist billing a foreign client is an exporter of services under the FEMA Export and Import Regulations, 2026, in force from 1 October 2026. For GST, the work is a zero-rated export when the five conditions in IGST Act section 2(6) are met. A registered freelancer can then supply without IGST under an LUT, as section 16(3) allows. These rules apply whether the client pays through PayPal, Wise or a bank transfer.
| Rule | Source | Clause | Plain meaning | Best for |
|---|---|---|---|---|
| GST registration threshold | CGST Act, 2017 | Section 22(1) and first proviso | A supplier must register once aggregate turnover in a financial year exceeds ₹20 lakh, or ₹10 lakh in special category States. | Freelancers deciding whether they need a GSTIN |
| Exports count in turnover | CGST Act, 2017 | Section 2(6) | Aggregate turnover includes exports of goods or services, so foreign SEO fees count towards the ₹20 lakh threshold. | Freelancers with mostly foreign clients |
| Compulsory registration cases | CGST Act, 2017 | Section 24 | Some persons must register whatever their turnover, including persons making inter-State taxable supplies. Check with a GST practitioner how this applies to you. | Freelancers below the threshold |
| Export of services test | IGST Act, 2017 | Section 2(6) | Supplier in India, client outside India, place of supply outside India, payment in convertible foreign exchange or in rupees where RBI permits, and the two are not establishments of the same person. | Every freelancer who wants to charge zero GST |
| Place of supply | IGST Act, 2017 | Section 13(2) | For services not listed in sub-sections (3) to (13), the place of supply is the location of the client. | Remote SEO work for clients abroad |
| LUT for zero-rated supply | IGST Act s.16; CGST Rule 96A | Section 16(3); Rule 96A(1)(b) | A registered person furnishes a bond or LUT in FORM GST RFD-11 before export. If payment is not received within one year or the FEMA period with any RBI extension, whichever is later, or a further period the Commissioner allows, tax and interest fall due 15 days after that. | Registered freelancers invoicing without IGST |
| Realisation of export value | FEMA Regulations, 2026 | Regulation 5(1)(a) and provisos | The full invoice value must be realised and repatriated within nine months of the invoice date, or twelve months if invoiced or settled in rupees. The AD bank may extend this on request. | Freelancers whose clients pay late |
| Purpose code reporting | FEMA Regulations, 2026; RBI Circular No. 84 of 2012 | Regulation 18(2); Circular No. 84, paragraph 3 | The AD bank reports foreign trade transactions in FETERS under RBI guidelines, and RBI asks banks to tag every foreign exchange transaction with a purpose code from its list. | Freelancers checking how a receipt is classified |
Which purpose code applies to freelance SEO specialists getting paid from abroad?
No code in the RBI FETERS purpose code list names SEO, so the code follows what the invoice describes. Search ads and promotion work sits closest to P1007, keyword or audience research sold as research to P1016, and SEO strategy advice to P1006. Confirm the code with your AD bank before the money is credited. See the P1007 purpose code and purpose code for freelancers.
| Code | Official RBI description (verbatim) | Source | Best for (transaction type) |
|---|---|---|---|
| P1007 | Advertising, trade fair service | RBI FETERS purpose codes | SEO and search marketing work sold as advertising or promotion |
| P1016 | Market research and public opinion polling service | RBI FETERS purpose codes | Keyword, market or audience research billed as a separate project |
| P1006 | Business and management consultancy and public relations services | RBI FETERS purpose codes | SEO audits and strategy consulting or PR outreach |
| P0802 | Software consultancy/implementation (other than those covered in SOFTEX form) | RBI FETERS purpose codes | Technical website or software implementation billed separately |
| P1099 | Other services not included elsewhere | RBI FETERS purpose codes | Services that fit no listed code, after checking with the AD bank |
Which option costs a freelance SEO specialist least on $500, $2,000 and $5,000?
Each row applies the platform's published fee, FX markup and 18% GST on the fee to the XE mid-market rate for 3 Nov 2026. Platforms without full published pricing are not included.
| Platform and invoice | Fee | FX markup | GST | INR received | Cost | Best for |
|---|---|---|---|---|---|---|
| Skydo, $500 | ₹1,799 | ₹0 | ₹324 | ₹45,211 | 4.48% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $2,000 | ₹1,799 | ₹0 | ₹324 | ₹1,87,213 | 1.12% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $5,000 | ₹2,745 | ₹0 | ₹494 | ₹4,70,098 | 0.68% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Razorpay, $500 | ₹1,000 | ₹0 | ₹180 | ₹46,154 | 2.49% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $2,000 | ₹1,893 | ₹0 | ₹341 | ₹1,87,101 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $5,000 | ₹4,733 | ₹0 | ₹852 | ₹4,67,752 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Wise Business, $500 | ₹929 | ₹0 | ₹167 | ₹46,238 | 2.32% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $2,000 | ₹3,158 | ₹0 | ₹568 | ₹1,85,608 | 1.97% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $5,000 | ₹7,617 | ₹0 | ₹1,371 | ₹4,64,350 | 1.90% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| PayPal, $500 | ₹2,111 | ₹1,357 | ₹380 | ₹43,486 | 8.13% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $2,000 | ₹8,359 | ₹5,429 | ₹1,505 | ₹1,74,042 | 8.08% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $5,000 | ₹20,855 | ₹13,574 | ₹3,754 | ₹4,35,154 | 8.07% | Card and PayPal-wallet payments from overseas PayPal buyers |
For example, on a $2,000 invoice Skydo pays about ₹1,87,213 and PayPal about ₹1,74,042 at today's reference rate, a difference of ₹13,171.
What documents follow each freelance SEO payment from abroad (FIRA, e-BRC, EDF, LUT)?
Each foreign payment to a freelance SEO specialist needs records that prove the export for FEMA and GST. A registered freelancer files the LUT before the first export invoice, endorses each invoice as CGST Rule 46 requires, and gives the AD bank an EDF within 30 days of the invoice month end. A FIRC or FIRA and an e-BRC then confirm the money arrived.
| Document | Who issues it | When needed | Best for |
|---|---|---|---|
| LUT (FORM GST RFD-11) | The freelancer files it on the GST portal under Services, User Services, Furnish Letter of Undertaking | Before export; valid for the whole financial year in which it is furnished (Circular 8/8/2017-GST) | GST-registered freelancers billing without IGST |
| Export invoice with endorsement | The freelancer | On every export invoice, endorsed "SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX" (Rule 46) | All GST-registered freelancers |
| EDF | The freelancer submits it to the AD bank, the specified authority for services other than software | Within 30 days from the end of the invoice month, or on or before the payment date (Regulation 3(2)) | Freelancers invoicing from 1 October 2026 |
| FIRC or FIRA | Rule 89 refers to foreign inward remittance certificates issued by an Authorised Dealer-I bank. Check with your AD bank or payment service which document it issues. | After each foreign payment is credited | Freelancers claiming GST refunds or proving export income; see FIRA for freelancers |
| e-BRC | DGFT issues it; the exporter with a linked IEC generates it under Services, eBRC on the DGFT portal (DGFT eBRC FAQs) | After the bank reports the inward remittance | Freelancers who need DGFT proof of realisation |
| EDPMS declaration | The freelancer gives it to the AD bank | For invoices up to ₹10 lakh, to close the EDPMS entry (Regulation 4(2)) | Freelancers on small monthly retainers |
What changes in 2026 for freelance SEO specialists getting paid from abroad?
In 2026 freelance SEO specialists move to a new FEMA export framework and a new income tax law. The FEMA Export and Import Regulations, 2026 apply from 1 October 2026, and RBI Circular No. 20 supersedes the Master Direction on exports from that date. The Income-tax Act, 1961 was repealed on 1 April 2026.
- New framework: From 1 October 2026, paragraph 4 of Circular No. 20 supersedes the Master Direction on Export of Goods and Services and the circulars in its Annex. See what changed in the FEMA export rules.
- EDF: Service exporters file an EDF within 30 days from the end of the invoice month under Regulation 3(2), and one EDF can cover a whole month. See the EDF form.
- Realisation: Regulation 5(1)(a), as amended on 22 September 2026, sets nine months from the invoice date, down from fifteen, or twelve months for rupee invoicing or settlement.
- Small invoices: EDPMS entries for invoices up to ₹10 lakh can close on the exporter's own declaration under Regulation 4(2).
- Income tax: Income from tax years starting on or after 1 April 2026 falls under the Income-tax Act, 2025, while earlier years stay under the 1961 Act.
How did we verify this?
Every rule is linked to its official source below with the date it was checked. Platform figures come from each platform's own pages; the full method is on the methodology page.
- RBI Notification No. FEMA 23(R)/2026-RB: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (amended up to September 22, 2026), Regulations 1(2), 2(1)(f), 3(2), 4(2) proviso, 5(1)(a) and provisos, 6 proviso, 18(2) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20 dated January 16, 2026: Export and Import of Goods and Services, Paragraph 4 and Annex (checked 6 Oct 2026)
- RBI: Guidelines for Submission of Data under FETERS, purpose codes for receipts (annex to A.P. (DIR Series) Circular No. 84, 2012), Receipt codes P0802, P1006, P1007, P1016, P1099 (opened via archived copy; live file is CAPTCHA-protected) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84 dated February 29, 2012: Compilation of R-Returns, Reporting under FETERS, Paragraph 3: AD banks to report all foreign exchange transactions with purpose codes (checked 6 Oct 2026)
- IGST Act, 2017, Section 2: Definitions, Section 2(6): export of services (checked 6 Oct 2026)
- IGST Act, 2017, Section 13: Place of supply where supplier or recipient is outside India, Section 13(2) (checked 6 Oct 2026)
- IGST Act, 2017, Section 16: Zero rated supply, Section 16(1)(a) and 16(3) (checked 6 Oct 2026)
- CGST Act, 2017, Section 2: Definitions, Section 2(6): aggregate turnover (checked 6 Oct 2026)
- CGST Act, 2017, Section 22: Persons liable for registration, Section 22(1) and first proviso (checked 6 Oct 2026)
- CGST Act, 2017, Section 24: Compulsory registration in certain cases, Section 24(i) (checked 6 Oct 2026)
- CGST Rules, 2017, Rule 96A: Export of goods or services under bond or Letter of Undertaking, Rule 96A(1)(b) (checked 6 Oct 2026)
- CGST Rules, 2017, Rule 89: Application for refund, Rule 89(2)(c) (checked 6 Oct 2026)
- CGST Rules, 2017, Rule 46: Tax invoice, Proviso on export invoice endorsement (checked 6 Oct 2026)
- CBIC Circular No. 8/8/2017-GST dated 4 October 2017: LUT and bond for exports, Paragraphs (a) eligibility and (b) validity of LUT (checked 6 Oct 2026)
- GST Portal user manual: Furnishing of Letter of Undertaking (FORM GST RFD-11), Steps 3 and 4 (checked 6 Oct 2026)
- DGFT FAQs on Self-Generation of eBRC (Version 1.0, March 2024), Q1 and Q10 (checked 6 Oct 2026)
- Income Tax Department: Objective and scope of the New Act (Income Tax Act 2025 FAQs), Repeal on 01.04.2026, tax year, earlier years (checked 6 Oct 2026)
- Skydo homepage (pricing and fee calculator), Know what you pay; calculator showing GST 18% of transaction fee (checked 6 Oct 2026)
- Razorpay MoneySaver Export Account (International Bank Transfers) pricing, Standard Plan: 0% FX markup, 1% fee, FlashLinks 2%, GST applicable, flat fee of INR 1,000 on transactions below INR 1,00,000, setup and AMC INR 0 (checked 6 Oct 2026)
- Wise India: Fees for receiving money (Business), Conversion fee depends on the currency; eFIRC for every transfer; GST 18% of (conversion fee + eFIRC fee); calculator (checked 6 Oct 2026)
- PayPal India Merchant Fees, Receiving international transactions; Currency Conversions (3.0% converting balance and payments received; 4.00% all other cases); Withdrawals Out of PayPal; Dispute Fees; Other Fees (Last Updated 28 March 2024) (checked 6 Oct 2026)
Frequently asked questions
Does a freelance SEO specialist in India need a GST LUT to receive foreign currency payments through PayPal or Wise?
A GST-registered freelancer who wants to bill foreign clients without IGST must furnish an LUT in FORM GST RFD-11 before export under CGST Rule 96A. The payment route does not change this. Without an LUT or bond, IGST is paid on the export invoice. See LUT filing on the GST portal.
Do freelance SEO specialists need GST registration for export of services below ₹20 lakh in India?
CGST Act section 22 requires registration once aggregate turnover exceeds ₹20 lakh, or ₹10 lakh in special category States. Exports count towards that turnover under section 2(6). Section 24 lists cases that need registration at any turnover, so confirm your position. See GST registration for freelancers.
Can an unregistered freelance SEO specialist file a GST LUT for export invoices?
No. CGST Rule 96A applies to a registered person, and the LUT is filed in FORM GST RFD-11 after logging in to the GST portal with a GSTIN. CBIC Circular 8/8/2017-GST extends the LUT facility to all registered persons, except those prosecuted for tax evasion above ₹250 lakh.
How long is a GST LUT valid for a freelancer exporting SEO services from India?
Under CBIC Circular 8/8/2017-GST, an LUT is valid for the whole financial year in which it is tendered. A freelancer therefore files a fresh LUT for each financial year before raising the first export invoice of that year. The GST portal user manual asks you to select the financial year on FORM GST RFD-11.
Is a FIRC or FIRA needed for freelance SEO export receipts under RBI and GST rules?
For a GST refund on export of services, CGST Rule 89(2)(c) asks for invoices with the related Bank Realisation Certificates or Foreign Inward Remittance Certificates. Rule 89 describes these certificates as issued by an Authorised Dealer-I bank. Keep the FIRC or FIRA for every receipt as proof of foreign export income. See FIRC vs FIRA vs e-BRC.
What is the RBI realisation deadline for freelance SEO export payments in 2026?
Under Regulation 5(1)(a) of the FEMA Regulations, 2026, a freelancer must realise and repatriate the full invoice value within nine months of the invoice date. The period is twelve months when the export is invoiced or settled in Indian rupees. The AD bank can extend it when the exporter gives reasons. See export realisation period.
What happens to the GST LUT if a foreign client never pays a freelance SEO invoice?
Under CGST Rule 96A(1)(b), unpaid export tax and interest fall due 15 days after one year or the FEMA period with any RBI extension, whichever is later, or a further period the Commissioner allows. For an invoice up to ₹10 lakh, Regulation 6 of the FEMA Regulations, 2026 allows a reduction in export value on the exporter's declaration.
Does a freelance SEO specialist file an EDF with the AD bank from October 2026?
Yes. Regulation 3(2) of the FEMA Regulations, 2026 requires a service exporter to give the specified authority an EDF within 30 days from the end of the invoice month. For services other than software, that authority is the AD bank. One EDF can cover all exports in a month. See the EDF form.