What Is the P0302 Purpose Code?

The P0302 purpose code covers foreign currency received for business travel. RBI lists P0302 in group 03, Travel, with the single description "Business travel". The list does not define the term further, so the invoice and the nature of the trip decide whether P0302 fits. AD banks report every foreign exchange transaction with a purpose code under FETERS, as set out in A.P. (DIR Series) Circular No. 84 of February 29, 2012. Regulation 18(2) of the 2026 Export and Import Regulations keeps this FETERS reporting in place.

P0302 vs P0306: P0306 is "Other travel receipts" in the same RBI group. P0302 fits travel for business purposes, and P0306 is a residual travel code. Because the list gives no further definition, use the more specific P0302 where the trip is clearly for business, and ask your AD bank if the position is unclear.

Use the P0302 purpose code when a foreign payer sends money for travel that is for business purposes and the service is provided by you in India. Typical cases are a travel agency receiving payment for a foreign company's business trip, or a hotel or transport provider paid for business visitors. The deciding question is what your invoice describes. The code you pick from the RBI purpose code list should match the invoice wording.

• Use P0304 instead: Use P0304 (Travel for medical treatment including TCs purchased by hospitals) when the travel is for medical treatment.
• Use P0305 instead: Use P0305 (Travel for education including TCs purchased by educational institutions) when the travel is for education.
• Use P0306 instead: Use P0306 (Other travel receipts) when the travel receipt fits none of the specific travel codes.

The P0302 purpose code is used by Indian travel agencies, tour operators, hotels and transport providers who receive foreign currency for business travel services. The Indian recipient of the payment declares the code with the AD bank or payment provider that credits the foreign currency.

• For example, a travel agency in Delhi is paid by a German company for arranging a week of business meetings and local transport for its team and declares P0302.
• For example, a hotel in Mumbai receives payment from a US firm for rooms booked for its visiting executives.
• For example, a corporate travel desk in Bengaluru bills a UK client for itinerary and ground arrangements for a business delegation.
• For example, a tour operator in Chennai receives funds from an Australian company for an incentive trip for its staff in India.

• The visitor is travelling to India for medical treatment. Use P0304 (Travel for medical treatment including TCs purchased by hospitals).
• The visitor is travelling for education. Use P0305 (Travel for education including TCs purchased by educational institutions).
• A freelancer is paid for consulting or software services delivered remotely to a foreign client. Use The service code that matches the work, such as P0802 or P1006.
• The receipt is the sale of foreign currency or travellers cheques over the counter. Use P0301 (Purchases towards travel).

For a travel receipt under the purpose code, the core documents are the invoice and the proof of the booking or service. Whether an Export Declaration Form is needed depends on whether the receipt counts as an export of services under Regulation 3(2) of the 2026 Export and Import Regulations, in force from October 01, 2026. Ask your AD bank before assuming either way.

• Invoice: Raise an invoice that names the foreign payer, describes the travel service, and shows the amount and currency.
• Booking record: Keep the booking confirmations, itinerary, tickets or hotel folios that show the business travel service you provided.
• EDF: If your AD bank treats the receipt as an export of services, an Export Declaration Form is needed within 30 days from the end of the invoice month. Ask your bank which category applies.
• Remitter details: Your AD bank may ask for KYC details, the remitter's details, or a short note confirming the purpose. Check with your AD bank for its exact list.

1. Check the invoice and booking record to confirm the payment is for business travel arranged for the foreign payer.
2. Open the inward payment in your bank or payment provider's portal, app or branch form when the foreign currency arrives or when you are asked for the purpose.
3. Select P0302 from the purpose code list, or write the code and its description if the form asks for text.
4. Attach or keep ready the invoice and booking record, and add the invoice number in any remarks field so the payment can be matched.
5. Confirm the code shown on the credit advice or inward remittance certificate is P0302, and ask your bank or payment provider to correct it if it is wrong.

• FIRA/FIRC: The inward remittance advice or certificate your bank or payment provider issues normally records the purpose of the payment, so the code you declare follows the payment into your records. Keep these documents with the matching invoice. Check with your AD bank on the exact format it issues.
• GST status: A business travel service is an export of services only if all conditions in section 2(6) of the IGST Act are met, including that the place of supply is outside India. Services physically provided in India to a visitor often do not meet that condition, so do not assume zero rating. Confirm the treatment with a tax professional.
• Zero rating: Where a supply does qualify as an export of services, it is a zero rated supply under section 16(1)(a) of the IGST Act. Where it does not, normal GST on the service applies.
• LUT: A registered person making a qualifying zero rated supply can supply without payment of integrated tax under a Letter of Undertaking. The LUT is filed as FORM GST RFD-11 on the GST portal.
• Income tax: The purpose code does not change how the income is taxed. The receipts are part of your business income and are reported in your return. The Income-tax Act, 2025 replaced the 1961 Act from 01.04.2026 and uses the term tax year. Take advice from a tax professional on the correct head and return form.

• Code mix-up: Declaring P0302 for a receipt that P0304 or P0305 describes, such as medical or education travel.
• Catch-all code: Using P1099 (Other services not included elsewhere) or P0306 (Other travel receipts) when P0302 describes the receipt.
• Personal codes: Selecting a transfer code such as P1301 (family maintenance) for business receipts, which misstates the nature of the receipt.
• Invoice mismatch: Writing an invoice description that does not match the code, for example billing "general services" while declaring P0302.
• Group confusion: Choosing a services code from group 08 or group 10 for a travel receipt because the service sounds like consulting.
• Unchecked EDF: Assuming no Export Declaration Form is needed. Ask your AD bank whether Regulation 3(2) applies to the receipt.

The code, its official description and every rule on this page are linked to RBI and other official sources, checked on the dates below.

1. RBI: Guidelines for Submission of Data, Foreign Exchange Transactions Electronic Reporting System (FETERS), purpose code list for receipts, Annex purpose codes, receipts, Group 03 Travel: P0301, P0302, P0304, P0305, P0306; Group 08 P0802; Group 10 P1006, P1099; Group 13 P1301 (checked 9 Oct 2026)
2. RBI A.P. (DIR Series) Circular No. 84 dated February 29, 2012: Compilation of R-Returns, Reporting under FETERS, Paragraph 3: AD banks to report all foreign exchange transactions as per the revised purpose code list from April 2012 (checked 9 Oct 2026)
3. 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), Regulation 1(2) (in force from October 01, 2026); 2(1)(f) (specified authority); 3(2) (EDF for services within 30 days from end of invoice month); 4(2) (EDPMS closure up to ₹10 lakh); 5(1)(a) (nine months from invoice date, as amended on September 22, 2026); 18(2) (FETERS reporting) (checked 9 Oct 2026)
4. 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: Master Direction on Export of Goods and Services and listed circulars, including the SOFTEX circulars, superseded from October 01, 2026 (checked 9 Oct 2026)
5. RBI: Export Declaration Form, Annex to the 2026 Regulations, Part 2B (details of services provided to multiple recipients) and Part 5 (certification by Custom, SEZ, Authorised Dealer or STPI) (checked 9 Oct 2026)
6. RBI Master Direction: Export of Goods and Services (updated as on July 17, 2026; superseded from October 01, 2026), Superseded from October 01, 2026; cited only to explain the earlier rule in paragraph B.7 (export of services without a specified form) (checked 9 Oct 2026)
7. IGST Act, 2017, Section 2: Definitions (CBIC tax information portal), Section 2(6): definition of export of services (checked 9 Oct 2026)
8. IGST Act, 2017, Section 16: Zero rated supply (CBIC tax information portal), Section 16(1)(a), 16(2) and 16(3): zero rated supply, input tax credit, supply under bond or Letter of Undertaking (checked 9 Oct 2026)
9. GST Portal user manual: Furnishing of Letter of Undertaking (FORM GST RFD-11), Filing path Services > User Services > Furnish Letter of Undertaking (LUT) (checked 9 Oct 2026)
10. Income Tax Department e-filing portal: Objective and scope of the New Act, Repeal of the 1961 Act on 01.04.2026 and the tax year concept (checked 9 Oct 2026)