PayPal, Wise or Payoneer: What GST and the RBI's Software Purpose Code Mean for Web Development Agencies

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.

Web development agencies in India are exporters of services under FEMA and under GST when the client is abroad. From October 01, 2026 the FEMA (Export and Import of Goods and Services) Regulations, 2026 set the declaration, realisation and reporting rules, and they count software as a service. For GST, section 2(6) of the IGST Act defines export of services and section 16 makes it a zero rated supply. These rules apply whichever platform or bank collects the payment.

Web development agencies usually receive payments under P0807 or P0802 in group 08 of the FETERS purpose code list. P0807 fits software built in India and delivered to the client, such as a finished website or web app. P0802 fits consulting and implementation work. 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 before the first receipt.

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 ₹1,87,080 and PayPal about ₹1,73,919 at today's reference rate, a difference of ₹13,161.

Each foreign payment to a web development agency is backed by an invoice, an inward remittance advice (FIRA or FIRC), an EDF and, for GST, 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 From October 01, 2026, the EDF under Regulation 3(2) replaces the SOFTEX form for software, after Circular No. 20 superseded the SOFTEX circulars.

In 2026 web development agencies move to a new FEMA export framework, a nine-month realisation period and a new income tax law. The FEMA Regulations 2026 took effect on October 01, 2026, and the September 2026 amendment set the realisation period at nine months before the rules took effect. The GST rules on LUT and zero rating continue to apply.

• EDF replaces SOFTEX: From October 01, 2026 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 Circular No. 20 superseded the SOFTEX circulars.
• Nine months: The amendment notification FEMA 23(R)/(1)/2026-RB replaced fifteen months with nine months for realisation, and eighteen with twelve months for INR invoices.
• Unrealised exports: If proceeds stay unrealised for over one year past the due date, further exports need full advance or a letter of credit under Regulation 13.
• Income tax: The Income-tax Act, 2025 replaced the 1961 Act from April 01, 2026. Its FAQ 25 says the old presumptive schemes, including section 44ADA, are now in section 58. Check the foreign tax credit provision before filing.
• Faster credit: RBI asked banks in April 2026 to endeavour to credit inward payments received in forex market hours on the same business day, effective six months from the April 09, 2026 circular.

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), 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), Paragraphs 2 and 3: nine and twelve months in Regulation 5(1); proviso to Regulation 13 (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 (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, Group 08 (P0802, P0803, P0807), Group 01 (P0103), Group 10 (P1007) (checked 6 Oct 2026)
5. RBI, A.P. (DIR Series) Circular No. 84 dated February 29, 2012, Reporting under FETERS, Paragraph 3 (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 (checked 6 Oct 2026)
11. DGFT, Self-Certified eBRC Generation Guidelines, Version 1.0 (10 November 2023), Rules 1, 2, 6, 9, 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 25: presumptive schemes consolidated in section 58 (checked 6 Oct 2026)
13. RBI, Guidelines to facilitate faster cross-border inward payments (April 09, 2026), Paragraphs 3 and 4 (same business day credit, effective six months from April 09, 2026) (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)