What Is the P1501 Purpose Code?

The P1501 purpose code covers money that comes back to an Indian importer from a foreign supplier as a refund or rebate on imports. RBI lists P1501 in group 15, Others, with the description "Refunds / rebates on account of imports". It is not a sale by you, so it is not an export receipt. AD banks report the code under FETERS, as set out in A.P. (DIR Series) Circular No. 84 of February 29, 2012. Under Regulation 18(2) of the 2026 Export and Import Regulations, FETERS reporting continues.

P1501 vs P1502: P1502 is "Reversal of wrong entries, refunds of amount remitted for non-imports" in the same group. P1501 fits a refund or rebate on goods you imported. P1502 fits a refund of money you had sent for something other than an import, or a reversal of a wrong entry. Check which one matches your original payment.

Use the P1501 purpose code when a foreign supplier refunds or gives a rebate on goods you imported. The deciding question is whether the original payment was for an import. Group 15 of the RBI purpose code list has related codes, so check the alternatives below before you choose P1501.

• Use P1502 instead: Use P1502 (Reversal of wrong entries, refunds of amount remitted for non-imports) when the original payment was not for an import, or a wrong entry is being reversed.
• Use P1503 instead: Use P1503 (Remittances (receipts) by residents under international bidding process.) when the receipt relates to an international bidding process.
• Use P1505 instead: Use P1505 (Deemed Exports ( exports between SEZ, EPZs and Domestic Tariff Areas)) when the receipt relates to deemed exports.

The P1501 purpose code is used by Indian importers who receive a refund or rebate from a foreign supplier. The importer declares P1501 to the AD bank that credits the foreign currency, and the bank reports the code to RBI.

• For example, a Mumbai trader imported machine parts, found some defective, and receives a refund from the foreign seller, declared under P1501.
• For example, a Chennai importer receives a volume rebate from a foreign supplier on goods bought during the year, declared under P1501.
• Say a Delhi company imported a shipment that was short-delivered and receives a credit-back for the missing goods, declared under P1501.
• Say an importer in Surat cancels part of an import order and gets back the price of the cancelled goods, declared under P1501.

• A foreign buyer pays you for goods you exported. Use An export of goods code from group 01, such as P0102 (Realisation of export bills (in respect of goods) sent on collection (full invoice value) – Other than Nepal and Bhutan).
• A foreign client pays you for software or consulting services. Use A services code that matches the work, such as P0802 (Software consultancy/implementation (other than those covered in SOFTEX form)).
• You get back money you had remitted for something other than an import. Use P1502 (Reversal of wrong entries, refunds of amount remitted for non-imports).
• A foreign authority refunds a tax to you. Use P1306 (Receipts / Refund of taxes).

For the P1501 purpose code, the core documents are the import invoice, the proof of the original payment and the supplier's refund or credit note. There is no export invoice, so the Export Declaration Form under the 2026 Export and Import Regulations does not apply to a refund on imports. Keep records that tie the refund to the original import.

• Import invoice: Keep the supplier's invoice and bill of entry for the goods the refund relates to.
• Credit note: Keep the supplier's credit note, refund letter or rebate statement that states the amount and the reason.
• Original payment: Keep proof of the original remittance so the refund can be matched to it.
• Credit advice: Keep the bank's credit advice showing the amount, currency, date and purpose code.

1. Check the supplier's credit note to confirm the money is a refund or rebate on goods you imported.
2. Open the inward payment in your bank's portal, app or branch form when the funds arrive or when you are asked for the purpose.
3. Select P1501 from the purpose code list, or write the code and its description if the form asks for text.
4. Add the original invoice number and the credit note number in any remarks field so the refund can be matched.
5. Confirm the code shown on the credit advice is P1501, and ask your bank to correct it if it is wrong.

• FIRA/FIRC: Your bank records the purpose on the inward remittance advice or certificate it issues. Check with your AD bank on the exact format. A refund on imports is not export income, so keep it with the import records.
• GST: A refund on imports is not an export of services under section 2(6) of the IGST Act. Ask a tax professional how a rebate or refund affects the GST and customs already paid on the import.
• Income tax: The purpose code does not decide how the amount is treated. The Income-tax Act, 2025 replaced the 1961 Act from April 01, 2026. Ask a tax professional how an import refund is reflected in your accounts.

• Export mix-up: Declaring P1501 for money a foreign buyer paid you for exports. Export receipts use group 01 or a services code.
• Non-import refund: Using P1501 for a refund of money remitted for something other than an import, where P1502 describes the receipt.
• Tax refund: Using P1501 for a foreign tax refund, where P1306 describes the receipt.
• No matching: Not noting the original import invoice, which makes the refund hard to match later.
• Catch-all: Using P1099 or P1499 when P1501 describes the refund.
• Wrong direction: Using P1501 for money you send out of India. Payments out of India use S codes. See what a wrong code can lead to.

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, Group 15 Others: P1501, P1502, P1503, P1505; Group 13 P1306; Group 01 P0102; Group 08 P0802 (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); 18(2) (FETERS reporting) (checked 9 Oct 2026)
4. IGST Act, 2017, Section 2: Definitions (CBIC tax information portal), Section 2(6): export of services (checked 9 Oct 2026)
5. Income Tax Department e-filing portal: Objective and scope of the New Act, FAQ 2: the 1961 Act stands repealed on 01.04.2026 (checked 9 Oct 2026)