PayPal, Wise or Payoneer: What GST and the RBI's Software Consultancy Code Mean for Freelance Developers

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.

Freelance developers in India follow the FEMA export rules and the GST export of services rules when the client is abroad. From October 01, 2026 the FEMA (Export and Import of Goods and Services) Regulations, 2026 cover declaration, realisation and reporting, and treat software as a service. Under GST, section 2(6) of the IGST Act defines export of services and section 16 zero rates it. The same rules apply whichever platform or bank receives the money.

Freelance developers usually receive payments under P0802 or P0807 in group 08 of the FETERS purpose code list. P0802 is the software consultancy code and fits consulting, implementation and integration work. P0807 fits software written in India and delivered to the client. DGFT's e-BRC guidelines accept only P0802, P0803, P0807 and P0103 for IT services, so confirm the code with your AD bank or platform.

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.

For example, on a $2,000 invoice Skydo pays about ₹1,87,299 and PayPal about ₹1,74,122 at today's reference rate, a difference of ₹13,177.

Each foreign payment to a freelance developer is backed by an export invoice, a FIRA or FIRC, an EDF and, if GST registered, an LUT. An e-BRC can be generated on DGFT under the self-certified e-BRC guidelines. From October 01, 2026 the EDF under Regulation 3(2) is the software declaration, after Circular No. 20 superseded the SOFTEX circulars.

In 2026 freelance developers move to a new FEMA export framework, EDF filing for software and a new income tax law. The FEMA Regulations 2026 took effect on October 01, 2026, and the September 2026 amendment set realisation at nine months instead of fifteen. GST zero rating and the LUT continue unchanged.

• SOFTEX ends: Software exports are declared on an EDF within 30 days of the invoice month end under Regulation 3(2). Circular No. 20 superseded the SOFTEX circulars from October 01, 2026.
• Nine months: The amendment FEMA 23(R)/(1)/2026-RB replaced fifteen months with nine months for realisation, and eighteen with twelve months for INR invoices, before the 2026 regulations took effect.
• Unpaid invoices: If proceeds stay unrealised for over one year past the due date, further exports need full advance or an irrevocable letter of credit under Regulation 13.
• Income tax: The Income-tax Act, 2025 replaced the 1961 Act on April 01, 2026, starting with Tax Year 2026-27. Its FAQ 25 says the presumptive schemes, including section 44ADA, are now in section 58.
• Faster credit: RBI asked banks in an April 09, 2026 circular to endeavour to credit inward payments received in forex market hours on the same business day. The circular applies six months from its date, in October 2026.

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, Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (FEMA 23(R)/2026-RB, amended up to September 22, 2026), Regulations 1(2), 2(1)(e), 2(1)(f)(iii) and Explanation, 3(2), 4(2), 5(1), 13 and 18(2) (checked 6 Oct 2026)
2. RBI, FEMA (Export and Import of Goods and Services) (Amendment) Regulations, 2026 (FEMA 23(R)/(1)/2026-RB), Paragraph 2: nine and twelve months in Regulation 5(1) (checked 6 Oct 2026)
3. 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)
4. RBI, Purpose codes for reporting under FETERS (Annex to A.P. (DIR Series) Circular No. 84, 2012), Receipt purpose codes P0103, P0802, P0803, P0807 and P1006 (checked 6 Oct 2026)
5. RBI, A.P. (DIR Series) Circular No. 84 dated February 29, 2012, Reporting under FETERS, Paragraph 3 (revised purpose code list) (checked 6 Oct 2026)
6. IGST Act, 2017, Section 2 (Definitions), Section 2(6), export of services (checked 6 Oct 2026)
7. IGST Act, 2017, Section 13 (Place of supply where supplier or recipient is outside India), Section 13(2) (checked 6 Oct 2026)
8. IGST Act, 2017, Section 16 (Zero rated supply), Section 16(1)(a) and 16(3) (checked 6 Oct 2026)
9. CGST Rules, 2017, Rule 96A (Export under bond or Letter of Undertaking), Rule 96A(1)(b) (checked 6 Oct 2026)
10. GST Portal user manual, Furnishing of Letter of Undertaking (FORM GST RFD-11), Filing steps 1 to 4 (checked 6 Oct 2026)
11. DGFT, Self-Certified eBRC Generation Guidelines, Version 1.0 (10 November 2023), Rules 1, 2, 6, 10 and 12 (checked 6 Oct 2026)
12. Income Tax Department, Objective and scope of the New Act (Income-tax Act, 2025 FAQs), FAQ 2 (1961 Act repealed on 01.04.2026), FAQ 9 (Tax Year from 2026-27), FAQ 25 (presumptive schemes in section 58) (checked 6 Oct 2026)
13. RBI, Guidelines to facilitate faster cross-border inward payments (April 09, 2026), Paragraphs 3 and 4 (checked 6 Oct 2026)
14. Skydo homepage (pricing and fee calculator), Know what you pay; calculator showing GST 18% of transaction fee (checked 6 Oct 2026)
15. 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)
16. 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)
17. 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)
18. Payoneer India home (checked 6 Oct 2026)