PayPal, Wise or Payoneer: What FIRC and GST Rules Mean for Web Developers Getting Paid 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.

A web developer billing a foreign client is an exporter of services under the FEMA Export and Import Regulations, 2026, in force from 1 October 2026, and Regulation 2 counts software as a service. GST treats the same work as a zero-rated export when all five conditions in IGST Act section 2(6) are met. Under section 16(3) the developer can supply without paying IGST under a bond or LUT and claim a refund of unused input tax credit. These rules apply whichever payment route the client uses.

Web development receipts usually fall in group 08 of RBI's FETERS purpose codes. P0807 is "Off-site Software Exports", which can fit a website or web app built in India and delivered online, and P0802 covers software consultancy or implementation. DGFT's eBRC generation guidelines accept only P0802, P0803, P0807 and P0103 for Services > IT. Confirm the code with your AD bank, and see P0802 vs P0807.

Each row applies the platform's published fee, FX markup and 18% GST on the fee to the XE mid-market rate for 4 Nov 2026. Platforms without full published pricing are not included.

For example, on a $2,000 invoice Skydo pays about ₹1,87,105 and PayPal about ₹1,73,942 at today's reference rate, a difference of ₹13,163.

Each foreign payment to a web developer needs a paper trail that proves the export for both FEMA and GST. The LUT comes before the first invoice, each invoice carries the export endorsement in CGST Rule 46, and the EDF follows within 30 days of the invoice month end. A bank certificate and an e-BRC then confirm the money arrived, and CGST Rule 89(2)(c) asks for BRCs or FIRCs in a refund claim for export of services.

In 2026 web developers move to a new FEMA export framework, the EDF replaces SOFTEX for software, and a new income tax law applies. The FEMA Export and Import Regulations, 2026 apply from 1 October 2026, and RBI Circular No. 20 supersedes the old Master Direction and the SOFTEX circulars from that date. The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026.

• SOFTEX ends: Circular No. 20 paragraph 4 and Annex A supersede the SOFTEX circulars from 1 October 2026. Software exports are now declared on the EDF under Regulation 3(2). See SOFTEX for freelancers.
• Software EDF: Software exporters file the EDF within 30 days from the end of the invoice month with an AD bank, STPI or the SEZ Development Commissioner under Regulation 2(1)(f)(iii), with one EDF allowed for a whole month.
• Realisation: Regulation 5(1)(a), as amended on 22 September 2026, sets nine months from the invoice date, or twelve months for rupee invoicing or settlement. See export realisation period.
• Small invoices: EDPMS entries for invoices up to ₹10 lakh can close on the exporter's own declaration under Regulation 4(2).
• Income tax: The Income-tax Act, 1961 was repealed on 1 April 2026. Income from FY 2026-27 onwards is assessed under the 2025 Act as tax year 2026-27, while earlier years stay under the old Act.

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.

1. 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)(e), 2(1)(f)(iii) and Explanation, 3(2)(a) and (b), 4(2) proviso, 5(1)(a) and provisos (amended by FEMA 23(R)/(1)/2026-RB dated 22 September 2026), 18(2) (checked 6 Oct 2026)
2. RBI A.P. (DIR Series) Circular No. 20 dated January 16, 2026: Export and Import of Goods and Services, Paragraphs 4 and 7 and Annex A (SOFTEX circulars superseded) (checked 6 Oct 2026)
3. RBI: FETERS guidelines and purpose code list (Annex to A.P. (DIR Series) Circular No. 84), Receipt purpose codes P0103, P0802, P0803, P0804, P0807 (checked 6 Oct 2026)
4. RBI A.P. (DIR Series) Circular No. 84 dated February 29, 2012: Compilation of R-Returns, Reporting under FETERS, Paragraph 3: purpose codes for all foreign exchange transactions reported in FETERS (checked 6 Oct 2026)
5. IGST Act, 2017, Section 2: Definitions, Section 2(6): export of services (checked 6 Oct 2026)
6. IGST Act, 2017, Section 13: Place of supply where supplier or recipient is outside India, Section 13(2) (checked 6 Oct 2026)
7. IGST Act, 2017, Section 16: Zero rated supply, Section 16(1)(a) and 16(3) (checked 6 Oct 2026)
8. CGST Rules, 2017, Rule 96A: Export of goods or services under bond or Letter of Undertaking, Rule 96A(1) and 96A(1)(b) (checked 6 Oct 2026)
9. CGST Rules, 2017, Rule 89: Application for refund, Rule 89(2)(c): BRCs or FIRCs for refund on export of services (checked 6 Oct 2026)
10. CGST Rules, 2017, Rule 46: Tax invoice, Proviso on export invoice endorsement (checked 6 Oct 2026)
11. GST Portal user manual: Furnishing of Letter of Undertaking (FORM GST RFD-11), Steps 3 and 4: Services > User Services > Furnish Letter of Undertaking (LUT); select the financial year (checked 6 Oct 2026)
12. DGFT FAQs on Self-Generation of eBRC (Version 1.0, March 2024), Q1 (what is eBRC), Q2 (IRM), Q10 (how to generate) (checked 6 Oct 2026)
13. DGFT Self-Certified eBRC Generation Guidelines, Version 1.0 (10 November 2023), Guideline 10: for Services > IT only P0802, P0803, P0807 and P0103 apply (checked 6 Oct 2026)
14. Income Tax Department: Objective and scope of the New Act (Income Tax Act 2025 FAQs), FAQs 2, 7 and 9: repeal on 01.04.2026, earlier years, tax year concept (checked 6 Oct 2026)
15. Skydo homepage (pricing and fee calculator), Know what you pay; calculator showing GST 18% of transaction fee (checked 6 Oct 2026)
16. 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)
17. 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)
18. 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)
19. Payoneer India home (checked 6 Oct 2026)