PayPal, Wise or Payoneer: What GST and FIRC Mean for Freelance Interior Designers Getting Paid
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
Freelance interior designers in India paid through PayPal, Wise or Payoneer follow the same rules in 2026. FEMA export regulations, 2026 require realisation within nine months of the invoice. For property-linked work, GST treats the fee as an export only if the property is outside India. A FIRC or FIRA proves receipt, and purpose code P1009 usually applies.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian resident freelance interior designers and small design studios billing foreign clients for design, drawings, 3D visuals or project coordination | FEMA 23(R)/2026-RB Regulations 3(2), 4(2), 5 and 18(2); IGST Act s.2(6), s.13(4) and s.16; CGST Rule 96A; FETERS purpose code P1009; Income-tax Act, 2025 section 58 | Skydo, Razorpay, Wise Business, PayPal, Payoneer | 7 Oct 2026 |
How do PayPal, Wise and Payoneer compare for freelance interior designers in India?
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 | ₹4,70,502 | 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 | ₹4,68,154 | 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 | ₹4,64,749 | 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 | ₹4,35,528 | PayPal pricing (checked 6 Oct 2026) |
| Payoneer | Freelancers and sellers paid via marketplaces or Payoneer clients | Conflicting receiving fee: free, fixed or 1%; 3% INR withdrawal | Conflicting: 3% (fee notice) or 1-4% (pricing page) | Conflicting: auto-withdrawn within 24 or 48 hours | Free digital FIRA downloads; within 72 hours per guide | States in-principle PA-CB; not on RBI list (30 Sep 2026) | ₹4,49,394 to ₹4,69,007 (estimate) | Payoneer pricing (checked 6 Oct 2026) |
Which RBI and GST rules apply to freelance interior designers in India getting paid from abroad?
Design fees from a foreign client fall under FEMA export rules, and GST zero-rating applies only if the fee counts as an export of services. From 1 October 2026 the FEMA (Export and Import of Goods and Services) Regulations, 2026 govern declaration, realisation and reporting, and A.P. (DIR Series) Circular No. 20 supersedes the old Master Direction. For interior design linked to a specific property, the location of that property decides the GST place of supply.
| Rule | Source | Clause | Plain meaning | Best for |
|---|---|---|---|---|
| Export declaration (EDF) | FEMA 23(R)/2026-RB | Regulation 3(2) | Declare the full export value in the EDF within 30 days from the end of the invoice month. Non-software services may file on or before the date of receipt of payment, and one EDF can cover a month's invoices. | Designers invoicing several clients each month |
| Realisation period | FEMA 23(R)/2026-RB | Regulation 5 | Bring in the full value within nine months from the invoice date, or twelve months if invoiced or settled in rupees. Your AD bank may extend this on request. | Designers on staged or milestone fees |
| Small invoice closure | FEMA 23(R)/2026-RB | Regulation 4(2) | For invoices up to Rs 10 lakh, the EDPMS entry may be closed on the exporter's declaration. | Solo designers with many small invoices |
| Purpose code reporting | FEMA 23(R)/2026-RB | Regulation 18(2) | The AD bank reports every foreign trade transaction in FETERS, which uses RBI purpose codes. | Anyone choosing a code when money arrives |
| Place of supply | IGST Act, 2017 | Section 13(4) | Services directly in relation to immovable property, including co-ordination of construction work by architects or interior decorators, are supplied where the property is located or intended to be located. | Designers working on a specific home, office or site |
| Export of services | IGST Act, 2017 | Section 2(6) | Supplier in India, client outside India, place of supply outside India, payment received in convertible foreign exchange or rupees where RBI permits, and the two are not merely establishments of a distinct person. | Checking whether a design fee counts as an export |
| Zero-rated supply | IGST Act, 2017 | Section 16(1) and 16(3) | Exports are zero-rated supplies, and a registered person may supply without paying IGST under a bond or LUT and claim refund of unused input tax credit. | GST-registered designers |
| LUT | CGST Rules, 2017 | Rule 96A(1)(b) | File an LUT in Form GST RFD-11 before export. If payment is not received within one year of the invoice, or the longer FEMA period, pay the tax with interest within 15 days. | Designers who want to avoid paying IGST upfront |
| EEFC account | FEMA 10(R)/2015-RB | Regulation 4(A) and Schedule I | A resident may credit 100 percent of eligible foreign exchange earnings, including professional earnings, to an EEFC account with an AD bank. | Designers who buy software or samples in the same currency |
Which purpose code applies to freelance interior designers in India?
Most interior design fees from abroad fit P1009, which RBI describes as architectural services. The AD bank reports the code under FETERS as set out in A.P. (DIR Series) Circular No. 84 of 2012. Confirm the code with your bank before the money is credited. See P1009 purpose code.
| Code | Official RBI description (verbatim) | Source | Best for (transaction type) |
|---|---|---|---|
| P1009 | Architectural services | RBI receipt purpose codes | Space planning, layouts, technical drawings and interior design fees |
| P1099 | Other services not included elsewhere | RBI receipt purpose codes | Design work your AD bank does not place under any listed code |
| P1007 | Advertising, trade fair service | RBI receipt purpose codes | Exhibition stand or trade fair design work, if your bank agrees |
| P0103 | Advance receipts against export contracts (export of goods only) | RBI receipt purpose codes | Advance payment for furniture or decor shipped abroad |
Which of PayPal, Wise and Payoneer leaves an interior designer the most rupees 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 | ₹1,800 | ₹0 | ₹324 | ₹45,250 | 4.48% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $2,000 | ₹1,800 | ₹0 | ₹324 | ₹1,87,374 | 1.12% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $5,000 | ₹2,748 | ₹0 | ₹495 | ₹4,70,502 | 0.68% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Razorpay, $500 | ₹1,000 | ₹0 | ₹180 | ₹46,194 | 2.49% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $2,000 | ₹1,895 | ₹0 | ₹341 | ₹1,87,262 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $5,000 | ₹4,737 | ₹0 | ₹853 | ₹4,68,154 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Wise Business, $500 | ₹929 | ₹0 | ₹167 | ₹46,278 | 2.32% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $2,000 | ₹3,161 | ₹0 | ₹569 | ₹1,85,768 | 1.97% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $5,000 | ₹7,623 | ₹0 | ₹1,372 | ₹4,64,749 | 1.90% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| PayPal, $500 | ₹2,113 | ₹1,358 | ₹380 | ₹43,523 | 8.13% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $2,000 | ₹8,366 | ₹5,434 | ₹1,506 | ₹1,74,192 | 8.08% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $5,000 | ₹20,873 | ₹13,586 | ₹3,757 | ₹4,35,528 | 8.07% | Card and PayPal-wallet payments from overseas PayPal buyers |
For example, on a $2,000 invoice Skydo pays about ₹1,87,374 and PayPal about ₹1,74,192 at today's reference rate, a difference of ₹13,182.
What documents follow each payment (FIRA, e-BRC, EDF, LUT)?
Each design payment from abroad should leave a record of a FIRC or FIRA, an e-BRC where needed, an EDF filing and a valid LUT. These documents back the GST export claim, EDPMS closure and income tax records. DGFT's eBRC FAQs describe the e-BRC as confirmation that the exporter received payment against an export.
| Document | Who issues it | When needed | Best for |
|---|---|---|---|
| FIRC or FIRA | Usually the bank or payment provider that credits the money | After each inward payment | Proving receipt in foreign exchange for GST and audits |
| e-BRC | Generated on the DGFT portal against the bank's inward remittance message (IRM) | When you need DGFT confirmation of payment, for example for GST benefits | Designers claiming refunds or export benefits |
| EDF | Filed by the designer with the AD bank (Regulation 3(2)) | Within 30 days from the end of the invoice month | Every export of services from 1 October 2026 |
| LUT (Form GST RFD-11) | Filed by the designer on the GST portal | Before the first export of each financial year | GST-registered designers exporting without IGST |
| Export invoice | The designer | For every project | Linking the payment to the property location, EDF, GST return and books |
What changes in 2026 for freelance interior designers in India?
Two legal shifts affect interior designers paid from abroad in 2026. RBI replaced its export Master Direction with new FEMA regulations from 1 October 2026, and the Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026.
- New regulations: The FEMA Export and Import Regulations, 2026 came into force on 1 October 2026, and Circular No. 20 superseded the Master Direction on export of goods and services.
- EDF for services: Service exporters now file an EDF within 30 days from the end of the invoice month, under Regulation 3(2).
- Shorter deadline: A September 2026 amendment set realisation at nine months, replacing the fifteen months first notified, and twelve months for rupee invoices, replacing eighteen (Regulation 5, footnotes 2 and 4).
- Tax year: From 1 April 2026 the Income-tax Act, 2025 uses tax year in place of previous year and assessment year. Income from FY 2026-27 is tax year 2026-27.
- Presumptive tax: Section 44ADA for professionals is now part of section 58 of the 2025 Act, per the Income Tax Department FAQ. See section 44ADA for freelancers.
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), 3(2), 4(2), 5 (and footnotes 2 and 4), 18(2) (checked 7 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20 dated January 16, 2026: Export and Import of Goods and Services, Paragraph 4: Master Directions and listed circulars superseded (checked 7 Oct 2026)
- RBI Notification No. FEMA 10(R)/2015-RB: Foreign Currency Accounts by a person resident in India Regulations, 2015, Regulation 4(A) and Schedule I, paragraph 1(1) (checked 7 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84 (2012), FETERS purpose codes for receipts, Receipt codes P0103, P1007, P1009, P1099 (checked 7 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84 dated February 29, 2012: Compilation of R-Returns, Reporting under FETERS, Reporting of foreign exchange transactions with purpose codes (checked 7 Oct 2026)
- IGST Act, 2017, Section 2: Definitions (CBIC tax information portal), Section 2(6): export of services (checked 7 Oct 2026)
- IGST Act, 2017, Section 13: Place of supply of services where location of supplier or recipient is outside India, Section 13(4): services in relation to immovable property, including architects or interior decorators (checked 7 Oct 2026)
- IGST Act, 2017, Section 16: Zero rated supply (CBIC tax information portal), Section 16(1)(a) and 16(3) (checked 7 Oct 2026)
- CGST Rules, 2017, Rule 96A: Export of goods or services under bond or Letter of Undertaking, Rule 96A(1) and 96A(1)(b) (checked 7 Oct 2026)
- GST Portal user manual: Furnishing of Letter of Undertaking (FORM GST RFD-11) (checked 7 Oct 2026)
- DGFT FAQs: Self-Generation of eBRC, Version 1.0, March 2024, Q1 (what is eBRC), Q2 (IRM) and Q79 (GSTIN on eBRC for GST benefits) (checked 7 Oct 2026)
- Income Tax Department e-filing portal: Objective and scope of the New Act (FAQs), FAQs 2, 9, 21 and 25: repeal of the 1961 Act, tax year, returns for AY 2026-27 and section 58 (checked 7 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)
- Payoneer India home (checked 6 Oct 2026)
Frequently asked questions
Which RBI purpose code should a freelance interior designer in India choose for a foreign inward remittance?
Most interior design fees fit P1009, described by RBI as architectural services. Work that fits no listed category may go under P1099, other services not included elsewhere. The RBI purpose code list sets the wording. Pick the code that matches the invoice and confirm it with your AD bank, which reports it in FETERS.
Is GST payable when an interior designer in India designs a flat in India for a client living abroad?
Usually yes. Under IGST section 13(4), services directly related to immovable property, including work of interior decorators, are supplied where the property is located. If the property is in India, the place of supply is India, so the fee fails the export test in section 2(6) even if paid in dollars. Check the facts with a tax adviser.
When is an interior design fee from a foreign client an export of services under GST?
A fee is an export of services under IGST section 2(6) when the designer is in India, the client is outside India, the place of supply is outside India, and payment arrives in convertible foreign exchange or permitted rupees. Supplier and client must not be merely establishments of a distinct person. For site-linked work, the property must be outside India.
Does a freelance interior designer in India need an LUT to bill foreign clients without IGST?
Yes, if registered for GST and exporting without paying IGST. Rule 96A requires a bond or LUT in Form GST RFD-11 before export, and it is filed each financial year on the GST portal. Without an LUT, the designer either files a bond or pays IGST and claims a refund. See LUT filing on the GST portal.
How long does an interior designer in India have to receive foreign payment under RBI export of services rules?
From 1 October 2026, Regulation 5 of the FEMA export regulations gives nine months from the invoice date for services. The period is twelve months if the invoice is raised or settled in rupees. The AD bank may extend it when the exporter gives reasons. See export realisation period.
Is a FIRC, FIRA or e-BRC proof of foreign inward remittance for an interior designer in India?
All three record that foreign money reached you. A FIRC or FIRA comes from the bank or provider that received the payment. An e-BRC is generated on the DGFT portal from the bank's IRM, as the DGFT eBRC FAQs explain. Keep one record for each invoice. See FIRC vs FIRA vs e-BRC.
Can an interior designer in India keep foreign design fees in an EEFC account?
Yes. Under FEMA 10(R)/2015-RB, a person resident in India may hold an Exchange Earners' Foreign Currency (EEFC) account with an AD bank. Schedule I allows 100 percent of eligible foreign exchange earnings to be credited, including professional earnings. Ask your AD bank about account terms. See what is an EEFC account.
Which Income-tax Act applies to an interior designer's foreign fees in tax year 2026-27?
Fees earned from 1 April 2026 fall under the Income-tax Act, 2025, and that period is tax year 2026-27. Returns for AY 2026-27, covering FY 2025-26, use forms under the 1961 Act. Presumptive taxation for professionals now sits in section 58 of the 2025 Act. See income tax on foreign income.