What Is the Purpose Code for Export of Goods?
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
RBI purpose codes for export of goods sit in Group 01 of the FETERS list, from P0101 to P0109. P0101 covers export bills negotiated, purchased or discounted. P0102 covers realisation of export bills sent on collection. P0103 covers advance receipts against export contracts. Your AD bank applies the code to each inward remittance.
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| Exporters of goods receiving payment in India | RBI FETERS purpose code list (Circular No. 84, 2012) and the FEMA export regulations, 2026 | Nine months from shipment, or twelve months if invoiced or settled in rupees | FEMA contraventions can attract penalty; GST refunds must be repaid with interest if proceeds are not realised in time | 9 Oct 2026 |
Which purpose codes cover export of goods?
Group 01 of the RBI list, named Exports (of Goods), holds the goods codes P0101 to P0109. The right code depends on how the money reaches the exporter, such as bill negotiation, collection, advance or merchanting.
- P0101: "Value of export bills negotiated / purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.) – Other than Nepal and Bhutan" (FETERS list).
- P0102: "Realisation of export bills (in respect of goods) sent on collection (full invoice value) – Other than Nepal and Bhutan".
- P0103: "Advance receipts against export contracts, which will be covered later by GR/PP/SOFTEX/SDF – other than Nepal and Bhutan".
- P0104: "Receipts against export of goods not covered by the GR /PP /SOFTEX /EC copy of shipping bill etc. (under Intermediary/transit trade, i.e., third country export passing through India".
- P0109: "Export realisation on account of exports to Nepal and Bhutan, if any".
Which export of goods payment routes match which purpose code?
The route of payment decides the code. The table maps common goods export situations to the Group 01 code whose description fits. Confirm with your AD bank, which reports the code to RBI.
| Situation | Code | Why | Best for |
|---|---|---|---|
| Bank negotiates or discounts the export bill | P0101 | Description covers bills negotiated, purchased or discounted | Exporters using bill discounting |
| Bill sent on collection and paid in full | P0102 | Description covers realisation of bills on collection | Exporters on documentary collection |
| Buyer pays before shipment | P0103 | Description covers advance receipts against export contracts | Exporters taking advance payment |
| Goods passing through India from a third country | P0104 | Description covers intermediary or transit trade | Traders in third country exports |
| Exports to Nepal or Bhutan | P0109 | Description covers export realisation for Nepal and Bhutan | Exporters selling to those two countries |
How do you select the purpose code for an export of goods payment on a bank or dashboard?
Find the field that asks for the purpose of the inward remittance and enter the Group 01 code that matches how the payment arrived. Use the shipping bill and invoice to decide, and keep both with the remittance advice.
- Check how the buyer is paying: advance, bank collection, discounting or direct remittance.
- Match that route to the Group 01 description in the FETERS list.
- Enter the code in the purpose field of the bank or dashboard screen.
- For shipments to Nepal or Bhutan, check the P0109 description.
- Download the inward remittance advice after credit and compare the purpose with the invoice.
- Keep the shipping bill, invoice and advice together for GST and bank queries.
How does GST apply to export of goods and the purpose code?
Export of goods means taking goods out of India to a place outside India under section 2(5) of the IGST Act. It is a zero rated supply under section 16(1)(a). The purpose code does not decide GST treatment.
- A registered person can export without paying IGST under bond or Letter of Undertaking, filed as FORM GST RFD-11.
- An exporter who takes a refund must deposit it with interest if sale proceeds are not realised within the FEMA time limit, as the proviso to section 16(3) states.
- See GST on export of services for the services side.
How does the purpose code appear on the FIRA for goods exports?
The inward remittance advice or certificate your AD bank issues normally records the purpose of the payment. Keep it with the invoice and contract. Check with your AD bank on the exact format it issues. For eBRC, the DGFT bulk eBRC user guide allows P0102, P0103, P0104 and P0109 for goods. See FIRC vs FIRA vs e-BRC.
- Keep the shipping bill with each remittance advice.
Which goods export purpose codes are often confused with each other?
P0101, P0102 and P0105 are the most confused, because all three deal with export bills. The difference is whether the bank buys the bill or only collects on it.
| Code | RBI description | Distinction | Best for |
|---|---|---|---|
| P0101 | Value of export bills negotiated / purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.) – Other than Nepal and Bhutan | Bank negotiates, purchases or discounts the bill | Exporters who get funds early from the bank |
| P0102 | Realisation of export bills (in respect of goods) sent on collection (full invoice value) – Other than Nepal and Bhutan | Money received when the buyer pays on collection | Exporters on collection terms |
| P0105 | Export bills (in respect of goods) sent on collection – other than Nepal and Bhutan | Bills sent on collection | Exporters asking the bank to confirm the correct collection code |
| P0103 | Advance receipts against export contracts, which will be covered later by GR/PP/SOFTEX/SDF – other than Nepal and Bhutan | Money arrives before shipment | Exporters taking advances |
What happens if the wrong purpose code is used for an export of goods payment?
A wrong code can leave the remittance mismatched with the shipping bill and the EDPMS record. The AD bank may ask for clarification, and the export may show as not realised.
- EDPMS: The bank links the remittance to the shipping bill, so a wrong code can delay matching.
- eBRC: The DGFT eBRC guidelines list which codes work for goods, so a wrong code can block eBRC generation.
- Penalty: A contravention of a FEMA regulation can attract penalty.
Ask your AD bank to correct the purpose with the shipping bill and invoice attached. See how to correct a wrong purpose code or FIRA after payment and EDPMS closure.
Which RBI rules govern purpose codes and realisation for export of goods?
The FETERS list sets the codes. The 2026 FEMA export regulations set the time limit for realising the export value of goods.
| Circular or regulation | Clause | Date | Plain meaning | Best for |
|---|---|---|---|---|
| A.P. (DIR Series) Circular No. 84 | Annex I | 29 February 2012 | List of purpose codes for receipts | Choosing a code |
| FEMA 23(R)/2026-RB | Regulation 3(1) | In force 1 October 2026 | EDF forms part of the shipping bill at EDI ports | Goods exporters |
| FEMA 23(R)/2026-RB | Regulation 5(1)(a) | In force 1 October 2026 | Nine months to realise export value, twelve if invoiced or settled in rupees | Planning payment timelines |
| A.P. (DIR Series) Circular No. 20 | Supersession | 16 January 2026 | Earlier Master Directions superseded from 1 October 2026 | All exporters |
What mistakes do exporters make when choosing a purpose code for goods?
- Wrong route: Picking a code for bill negotiation when the buyer paid by direct remittance.
- Advance mix-up: Using P0102 for a payment received before shipment instead of P0103.
- Nepal and Bhutan: Using P0101 to P0108 for Nepal or Bhutan exports, which have P0109.
- Services code: Using a services code for goods because the invoice includes a service line.
- No shipping bill: Not keeping the shipping bill with the remittance advice.
- Late realisation: Ignoring the nine month limit, which affects both FEMA and GST refunds.
How did we verify this?
Every rule, deadline and form on this page is linked to its official source, checked on the dates below.
- RBI: Guidelines for Submission of Data, FETERS, purpose code list for receipts (A.P. (DIR Series) Circular No. 84, 29 February 2012), Annex I, receipt purposes (checked 9 Oct 2026)
- Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, FEMA 23(R)/2026-RB, amended up to 22 September 2026 (checked 9 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20 dated 16 January 2026: Export and Import of Goods and Services, Supersession of the earlier Master Directions and SOFTEX circulars from 1 October 2026 (checked 9 Oct 2026)
- IGST Act, 2017, Section 2: Definitions (CBIC tax information portal), Section 2(5) export of goods, section 2(6) export of services (checked 9 Oct 2026)
- IGST Act, 2017, Section 16: Zero rated supply (CBIC tax information portal), Section 16(1) to (3) (checked 9 Oct 2026)
- GST Portal user manual: Furnishing of Letter of Undertaking (FORM GST RFD-11) (checked 9 Oct 2026)
- DGFT: Exporter User Guide on Bulk Generation of eBRC, Codes allowed for goods (checked 9 Oct 2026)
Frequently asked questions
Which purpose code is used for normal goods export payments?
RBI's list does not name one default code. P0101 applies when the bank negotiates or discounts the bill, and P0102 applies when the bill goes on collection and is realised. Match the route of payment to the description, and confirm with your AD bank.
What is the purpose code for exports to Nepal and Bhutan?
P0109 reads "Export realisation on account of exports to Nepal and Bhutan, if any". The other Group 01 codes carry the words other than Nepal and Bhutan in their descriptions, so they do not apply to those two countries.
Is P0103 a goods export code?
P0103 sits in Group 01, Exports (of Goods), and covers advance receipts against export contracts that will be covered later by GR, PP, SOFTEX or SDF. Use it when the buyer pays before shipment. See the linked guide on advance payments.
Does the purpose code change GST on export of goods?
No. Export of goods is a zero rated supply under section 16(1)(a) of the IGST Act whatever the purpose code. The code records how the payment arrived. A registered exporter can file an LUT to export without paying IGST.
Where does the goods purpose code appear after the payment is credited?
The inward remittance advice from your AD bank normally records the purpose of the payment. The bank also reports the code to RBI under FETERS. Check the advice against your invoice and shipping bill after each credit.
Who can correct a wrong goods export purpose code?
Only your AD bank can correct the purpose on its own records. Write to the bank with the shipping bill, invoice and remittance advice. Act early, because the code also feeds the EDPMS match for the shipping bill.