Wise, Payoneer or Remitly: What GST Rules Mean for Freelancers Getting Paid from Canada
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
- Published:
- Last modified:
Short answer
CAD payments from Canada via Wise, Payoneer or Remitly in 2026 follow Indian GST and RBI FEMA rules. Services to a Canadian client are an export of services under IGST s.2(6) when all five conditions are met. Exports are zero-rated under IGST s.16. An LUT under Rule 96A lets registered exporters skip paying IGST. A FIRC supports GST refund claims.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian resident freelancers, sole proprietors and small firms who invoice clients in Canada for services and are paid in CAD, another foreign currency or INR through Wise, Payoneer, Remitly or a bank transfer. | FEMA (Export and Import of Goods and Services) Regulations 2026, FEMA (Manner of Receipt and Payment) Regulations 2023, IGST Act s.2(6), s.7(5), s.13(2) and s.16, CGST Act s.22, CGST Rule 89 and Rule 96A, and on the Canadian side CRA Information Circular IC75-6R2 and the GST/HST digital economy measures. | Skydo, Razorpay, Wise Business, Payoneer, Remitly | 6 Oct 2026 |
How do Wise, Payoneer and Remitly compare for Indian freelancers receiving CAD from Canadian clients?
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 | ₹4,70,132 | 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 | ₹4,67,786 | 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 | ₹4,64,383 | Wise Business 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) | ₹4,49,041 to ₹4,68,638 (estimate) | Payoneer pricing (checked 6 Oct 2026) |
| Remitly | Family and personal remittances from the US to India | Sender pays $3.99 below $1,000, $0 from $1,000; recipient charges not confirmed | Not published; may earn from rate difference | Promised time per transfer; specific timings not confirmed | Not confirmed; not stated on Remitly pages | Not confirmed; not shown as PA-CB authorised | Not for business: Remitly is for personal, family or household transfers | Remitly pricing (checked 6 Oct 2026) |
Which RBI rule governs money received from Canadian clients in CAD?
The FEMA (Manner of Receipt and Payment) Regulations 2023 decide how a Canadian client may pay: for countries outside the Asian Clearing Union, trade receipts may be in Indian rupees or any foreign currency, so CAD is allowed. Canada is not among the ACU members named in RBI's earlier 2016 Manner of Receipt regulations. From 1 October 2026 the FEMA Export and Import Regulations 2026 set the EDF, realisation and EDPMS rules, and A.P. (DIR Series) Circular No. 20 supersedes the Master Direction on Export.
| Rule | Source | Clause | Plain meaning | Best for |
|---|---|---|---|---|
| Currency of receipt | Manner of Receipt and Payment Regulations 2023 | Reg 3(2)(I)(a)(iii) | A client in a country outside the ACU, such as Canada, may pay in Indian rupees or any foreign currency, including CAD. | Choosing the invoice currency for a Canadian client |
| Export declaration (EDF) | FEMA Export and Import Regulations 2026 | Reg 3(2) | Declare the full export value in an EDF within 30 days from the end of the month the invoice was raised. One EDF can cover all of a month's exports. | Freelancers billing Canadian clients every month |
| Bank credit and EDPMS | FEMA Export and Import Regulations 2026 | Reg 4(2) | The AD bank credits the money after checking the transaction is genuine and closes the EDPMS entry. Invoices up to ₹10 lakh can be closed on the exporter's declaration. | Freelancers with smaller Canadian invoices |
| Realisation period | FEMA Export and Import Regulations 2026 | Reg 5(1), as amended | Services must be paid within nine months of the invoice date, or twelve months if invoiced or settled in INR. The AD bank may extend this on request. | Anyone with slow-paying Canadian clients |
| Reporting and purpose codes | FEMA Export and Import Regulations 2026 | Reg 18(2) | The AD bank reports foreign trade transactions in FETERS, which uses RBI purpose codes. | Understanding why a purpose code is asked for |
| Payment aggregator limits | RBI Master Direction on Payment Aggregators | Para 11(d) and 11(h) | A cross-border payment aggregator can process up to ₹25 lakh per transaction and must give the exporter's AD bank the documents needed to close EDPMS entries. | Freelancers paid through an aggregator |
Which of Wise, Payoneer and Remitly costs least on a typical Canadian client payment?
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 | ₹45,215 | 4.48% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $2,000 | ₹1,799 | ₹0 | ₹324 | ₹1,87,226 | 1.12% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $5,000 | ₹2,746 | ₹0 | ₹494 | ₹4,70,132 | 0.68% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Razorpay, $500 | ₹1,000 | ₹0 | ₹180 | ₹46,157 | 2.49% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $2,000 | ₹1,893 | ₹0 | ₹341 | ₹1,87,114 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $5,000 | ₹4,734 | ₹0 | ₹852 | ₹4,67,786 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Wise Business, $500 | ₹929 | ₹0 | ₹167 | ₹46,241 | 2.32% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $2,000 | ₹3,158 | ₹0 | ₹569 | ₹1,85,622 | 1.97% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $5,000 | ₹7,618 | ₹0 | ₹1,371 | ₹4,64,383 | 1.90% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
For example, on a $2,000 invoice Skydo pays about ₹1,87,226 and Wise Business about ₹1,85,622 at today's reference rate, a difference of ₹1,604.
What documents and GST apply to Canada payments?
Each Canadian payment involves an export invoice, an EDF entry and a FIRC or bank inward remittance record, plus an LUT if you are GST-registered. Services to a Canadian client count as an export of services when the five conditions in IGST Act s.2(6) are met, including payment in convertible foreign exchange or INR where RBI permits. For most services the place of supply is the recipient's location (IGST s.13(2)). An export is a zero-rated supply under IGST s.16, and an LUT in Form GST RFD-11 lets you export without paying IGST.
| Document | Who issues it | When needed | Best for |
|---|---|---|---|
| Export invoice | You, the exporter | When you bill the Canadian client; the invoice date starts the nine-month realisation clock under Reg 5(1) | Every Canadian project or monthly retainer |
| Export Declaration Form (EDF) | You declare it to the specified authority: an AD bank for services, or an AD bank or STPI for software (Reg 2(1)(f)) | Within 30 days from the end of the invoice month (Reg 3(2)) | All service and software exporters |
| FIRC (foreign inward remittance certificate) | Your AD bank, where it issues one. The 2026 RBI regulations do not name the FIRC, so ask your bank what record it provides | After the money is credited. CGST Rule 89(2)(c) asks for BRC or FIRC details when claiming a refund on export of services | GST refund claims and proof of foreign receipt |
| eBRC | DGFT; you self-generate it on the DGFT portal from your bank's inward remittance message (IRM) (DGFT eBRC FAQs) | After payment is received, under the DGFT eBRC guidelines | Exporters who need a DGFT record of realisation |
| Letter of Undertaking (Form GST RFD-11) | You file it on the GST portal | Before export; valid for the whole financial year it is filed in (Circular 8/8/2017-GST) | GST-registered freelancers exporting without paying IGST |
| Canadian GST/HST registration | Canada Revenue Agency, under the digital economy measures | Only for non-resident vendors whose digital product and service sales to Canadian consumers and other recipients not registered for GST/HST exceed CAD 30,000 in any 12-month period; supplies to customers registered under the normal GST/HST regime are left out (CRA threshold rules) | Freelancers selling digital products or services directly to Canadian consumers |
What changed in the rules this year?
The main change is that the FEMA Export and Import Regulations 2026 replaced the 2015 regulations on 1 October 2026. RBI also asked banks to credit inward cross-border payments faster from October 2026, and the Income-tax Act, 2025 took effect on 1 April 2026.
- New regulations: From 1 October 2026, Circular No. 20 supersedes the Master Direction on Export of Goods and Services and the SOFTEX circulars. Software exports are now declared in the EDF.
- Realisation: A 22 September 2026 amendment set the period at nine months, or twelve months for INR invoices, replacing the fifteen and eighteen months in the January text before it took effect.
- EDPMS closure: Invoices up to ₹10 lakh can be closed in EDPMS on the exporter's declaration, one by one or in a quarterly bulk declaration (Reg 4(2)).
- Faster credit: An RBI circular of 9 April 2026 asks banks to try to credit inward payments received in forex market hours on the same business day. It takes effect six months from the circular date, which is 9 October 2026.
- Income tax: The Income-tax Act, 2025 repealed the 1961 Act from 1 April 2026 and uses the term 'tax year'. Earlier years stay under the old 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.
- Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB (amended up to 22 September 2026), Regulations 2(1)(f), 3(2), 4(2), 5(1) and 18(2) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20, RBI/2025-26/194: Export and Import of Goods and Services (16 January 2026), Supersession of Master Direction and SOFTEX circulars (Annex) (checked 6 Oct 2026)
- Foreign Exchange Management (Export and Import of Goods and Services) (Amendment) Regulations, 2026, Notification No. FEMA 23(R)/(1)/2026-RB (22 September 2026), Para 2 (amendment to regulation 5) (checked 6 Oct 2026)
- Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, Notification No. FEMA 14(R)/2023-RB, Regulation 3(2)(I)(a)(iii) (checked 6 Oct 2026)
- Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016, FEMA 14(R)/2016-RB (superseded; cited only for its list of ACU members), Regulation 3(1)(A), Members of the Asian Clearing Union (checked 6 Oct 2026)
- RBI Master Direction on Regulation of Payment Aggregator (PA), RBI/DPSS/2025-26/141 (15 September 2025), Paragraph 11(d) and 11(h) (checked 6 Oct 2026)
- RBI circular RBI/2026-27/08: Guidelines to facilitate faster cross-border inward payments (9 April 2026), Paras 3 and 4 (checked 6 Oct 2026)
- Integrated Goods and Services Tax Act, 2017, section 2 (CBIC tax information portal), Section 2(6) (checked 6 Oct 2026)
- Integrated Goods and Services Tax Act, 2017, section 7 (CBIC tax information portal), Section 7(5)(a) (checked 6 Oct 2026)
- Integrated Goods and Services Tax Act, 2017, section 13 (CBIC tax information portal), Section 13(2) (checked 6 Oct 2026)
- Integrated Goods and Services Tax Act, 2017, section 16: Zero rated supply (CBIC tax information portal), Section 16(1) (checked 6 Oct 2026)
- Central Goods and Services Tax Act, 2017, section 2 (CBIC tax information portal), Section 2(6), aggregate turnover (checked 6 Oct 2026)
- Central Goods and Services Tax Act, 2017, section 22: Persons liable for registration (CBIC tax information portal), Section 22(1) (checked 6 Oct 2026)
- Central Goods and Services Tax Act, 2017, section 24: Compulsory registration in certain cases (CBIC tax information portal), Section 24(i) (checked 6 Oct 2026)
- Central Goods and Services Tax Rules, 2017, Rule 96A (CBIC tax information portal), Rule 96A(1) (checked 6 Oct 2026)
- Central Goods and Services Tax Rules, 2017, Rule 89: Application for refund (CBIC tax information portal), Rule 89(2)(c) (checked 6 Oct 2026)
- CBIC Circular No. 8/8/2017-GST: Clarification on issues related to furnishing of Bond/Letter of Undertaking (4 October 2017), Validity of LUT (checked 6 Oct 2026)
- GST Portal user guide: Furnishing of Letter of Undertaking (Form GST RFD-11), Filing steps (checked 6 Oct 2026)
- DGFT Self-Certified eBRC Generation Guidelines, Version 1.0 (10 November 2023) (checked 6 Oct 2026)
- DGFT FAQs on Self-Generation of eBRC, Version 1.0 (March 2024) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84, RBI/2011-12/413: Compilation of R-Returns, reporting under FETERS (29 February 2012), Paragraph 3 (checked 6 Oct 2026)
- Income Tax Department: Objective and scope of the new Act (Income-tax Act, 2025), FAQs 2 and 7 on repeal of the 1961 Act on 01.04.2026 (checked 6 Oct 2026)
- Canada Revenue Agency: Calculating the threshold amount, cross-border digital products and services (GST/HST digital economy measures), CAD 30,000 over any 12-month period; exclusions (checked 6 Oct 2026)
- Canada Revenue Agency: Definitions under the digital economy measures, Specified Canadian recipient (checked 6 Oct 2026)
- Canada Revenue Agency Information Circular IC75-6R2: Required Withholding from Amounts Paid to Non-Residents Providing Services in Canada, Paragraphs 2 and 32 (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)
- Payoneer India home (checked 6 Oct 2026)
- Remitly: Send Money to India from the US (checked 6 Oct 2026)
Frequently asked questions
Is GST charged when an Indian freelancer receives CAD from a Canadian client through Wise, Payoneer or Remitly?
No GST is charged on a qualifying export of services, which is a zero-rated supply under IGST s.16. The supply must meet all five conditions of IGST s.2(6), including payment in convertible foreign exchange or INR where RBI permits. A registered freelancer files an LUT to export without paying IGST. See GST on export of services.
Does an Indian freelancer paid from Canada need GST registration below the ₹20 lakh threshold?
The general threshold under CGST s.22 is ₹20 lakh, or ₹10 lakh in special category States, and aggregate turnover includes exports (CGST s.2(6)). Exports count as inter-State supplies under IGST s.7(5), and CGST s.24(i) covers inter-State suppliers. Check current exemption notifications with a GST practitioner. See GST registration for freelancers.
Do I need to file an LUT before invoicing a Canadian client in CAD in 2026?
A GST-registered freelancer who wants to export without paying IGST must file an LUT in Form GST RFD-11 before export under CGST Rule 96A. One LUT covers the whole financial year it is filed in, per Circular 8/8/2017-GST. Without an LUT, IGST is paid and refunded later. See LUT filing on the GST portal.
Do I need a FIRC for every Canada payment to claim a GST refund on export of services?
A FIRC or BRC is needed when you claim a GST refund on export of services, because CGST Rule 89(2)(c) asks for the BRC or FIRC number and date for each invoice. Keeping a FIRC or bank inward remittance record for every Canadian payment also gives proof of foreign receipt. Read FIRC vs FIRA vs e-BRC.
Do Canadian clients withhold 15% tax from fees paid to Indian freelancers under Regulation 105?
Regulation 105 requires a 15% withholding on fees paid to non-residents for services rendered in Canada. The CRA's Information Circular IC75-6R2 states that payments for services performed outside Canada are not subject to Regulation 105 withholding. Work done entirely from India therefore falls outside it. Work performed while visiting Canada may be covered.
Must an Indian freelancer register for Canadian GST/HST when selling digital services to Canada?
Registration under Canada's simplified GST/HST regime applies when sales of digital products and services to Canadian consumers exceed CAD 30,000 in any 12-month period, per the CRA threshold rules. Supplies to customers registered under the normal GST/HST regime are left out, as the CRA definition of specified Canadian recipient shows. Work for GST/HST-registered Canadian businesses stays outside it.
How long can a Canadian client take to pay under the RBI export realisation rule in 2026?
Under Regulation 5(1) of the FEMA Export and Import Regulations 2026, services must be paid within nine months from the invoice date, or twelve months if invoiced or settled in INR. Your AD bank can extend the period on request with reasons. See export realisation period.
Which RBI purpose code applies to CAD payments from Canada for freelance services?
Banks report every receipt under RBI's revised purpose code list (A.P. (DIR Series) Circular No. 84). The code depends on the service you sold, such as software, consulting or design work. Confirm the code with your AD bank before the payment is credited. See purpose code for freelancers and receive money from Canada to India.