Which RBI Purpose Code Applies to Software and IT Services Exports From India?
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
Software and IT services exports mainly use P0802 for software consultancy or implementation and P0807 for off-site software exports. Related codes cover database work and software maintenance. The right code depends on whether the invoice is for services or for software developed in India and exported.
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| Software companies, IT service firms and developers in India billing clients outside India | Regulation 18(2) of the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, read with the RBI FETERS purpose code list | Service EDF within 30 days from the end of the invoice month; realisation within 9 months (12 months if invoiced or settled in rupees) | Not applicable for the code itself. A wrong code can trigger bank queries and correction requests | 9 Oct 2026 |
What is the purpose code for software and IT services exports?
The purpose code for software and IT services exports sits in Group 08 of the RBI FETERS list. P0802 covers software consultancy or implementation and P0807 covers off-site software exports. Pick the one that matches the invoice.
- P0802: Official description: "Software consultancy/implementation (other than those covered in SOFTEX form)". See P0802 purpose code.
- P0807: Official description: "Off-site Software Exports". See P0807 purpose code.
- Other IT codes: P0803 is "Data base, data processing charges". P0804 is "Repair and maintenance of computer and software".
- Source: All descriptions come from the RBI FETERS purpose code list.
The SOFTEX form that older pages mention no longer applies from 1 October 2026, as explained below.
Which software and IT service exports use which purpose code?
The type of software export decides the code. Consulting and implementation lean to P0802, exported software to P0807, database work to P0803 and support contracts to P0804.
| Export type | Likely code | Official RBI description | Best for |
|---|---|---|---|
| Software consulting or implementation | P0802 | "Software consultancy/implementation (other than those covered in SOFTEX form)" | IT consultancies and developers billing services |
| Software developed in India and exported | P0807 | "Off-site Software Exports" | Product and project software exporters |
| Database and data processing services | P0803 | "Data base, data processing charges" | Data engineering and processing firms |
| Software support and maintenance | P0804 | "Repair and maintenance of computer and software" | Firms on support contracts |
| Business advice with no software work | P1006 | "Business and management consultancy and public relations services" | Consultants outside software delivery |
How do exporters declare a purpose code for software exports now that SOFTEX is replaced?
From 1 October 2026 the Export Declaration Form replaces SOFTEX for software, and the AD bank still reports a FETERS purpose code. Circular No. 20 supersedes the earlier SOFTEX circulars from that date.
- Decide whether the invoice is for software services or for software developed in India and exported.
- Check the official description in the RBI list and match it to the wording on your invoice and contract.
- Give the same code and description to your AD bank or payment provider when you set up the receipt, and confirm it appears on the remittance advice.
- File the Export Declaration Form for services within 30 days of the end of the invoice month, as required by Regulation 3(2), unless a waiver applies. See EDF form for exports.
- Keep the invoice, contract, remittance advice and bank credit together, and ask your AD bank to correct a wrong code quickly using the steps in how to correct a purpose code.
What did SOFTEX do before October 2026?
SOFTEX was the declaration form software exporters filed under the earlier Master Direction. It has been replaced by the EDF for software exports from 1 October 2026. See SOFTEX form filing for the history.
Is a single monthly EDF allowed for software services?
The 2026 regulations allow a single EDF for certain service exports to multiple recipients, under Regulation 3(2). Confirm with your AD bank whether your invoices qualify.
- Check Regulation 3(2) and its provisos.
- Ask your AD bank how it wants the EDF filed.
What are the official purpose code descriptions for software exports?
The exact wording sits in the RBI FETERS list. The table gives the Group 08 descriptions most relevant to software and IT exports.
| Code | Official RBI description | Group | Best for |
|---|---|---|---|
| P0801 | Hardware consultancy/implementation | Telecommunication, Computer & Information Services | Hardware advisory work |
| P0802 | Software consultancy/implementation (other than those covered in SOFTEX form) | Telecommunication, Computer & Information Services | Software consulting and implementation |
| P0803 | Data base, data processing charges | Telecommunication, Computer & Information Services | Database and data processing |
| P0804 | Repair and maintenance of computer and software | Telecommunication, Computer & Information Services | Support and maintenance |
| P0807 | Off-site Software Exports | Telecommunication, Computer & Information Services | Exported software |
What happens when a software exporter uses the wrong purpose code?
A wrong purpose code can lead to AD bank queries and a request to correct the remittance record. The bank has reported the code under FETERS, so any correction goes through the bank.
- Mismatch: The invoice may describe consulting while the code says exported software, which prompts questions.
- EDF link: The EDF and remittance should tell the same story, so a mismatch affects the export entry matching.
- Reporting: The bank reports the code to RBI, so only the bank can correct what it has reported.
Raise the issue with your AD bank with the invoice and contract. See how to correct a purpose code.
Which RBI rules govern purpose codes for software exports?
The rules are the FETERS purpose code list, the circular that put it in force, the 2026 export regulations, and the circular that retired SOFTEX.
| Circular or regulation | Clause | Date | Plain meaning | Best for |
|---|---|---|---|---|
| RBI FETERS purpose code list | Annex, receipts | Circular dated 29 February 2012 | Lists the purpose codes and descriptions banks use when reporting inward remittances | Software exporters confirming a code |
| A.P. (DIR Series) Circular No. 84 | Paragraph 3 | 29 February 2012 | AD banks report foreign exchange transactions using this purpose code list | Banks reporting receipts |
| FEMA 23(R)/2026-RB | Regulation 18(2) | In force 1 October 2026, amended 22 September 2026 | FETERS reporting by AD banks continues under the 2026 export regulations | Exporters moving off SOFTEX |
| FEMA 23(R)/2026-RB | Regulation 3(2) | In force 1 October 2026 | Service exporters file the EDF within 30 days of the end of the invoice month | Service exporters filing EDF |
| A.P. (DIR Series) Circular No. 20 | Paragraphs 4 and 7, Annex A | 16 January 2026 | Supersedes the earlier export Master Direction and the SOFTEX circulars from 1 October 2026 | Companies retiring SOFTEX |
What mistakes do software exporters make with purpose codes?
- Using SOFTEX: Still filing SOFTEX after 1 October 2026. Circular No. 20 supersedes the SOFTEX circulars.
- Wrong split: Using one code for consulting and exported software on the same invoice. Split the lines.
- Skipping code check: Entering a code from memory. Read the official description first.
- Missing EDF: Missing the 30 day service EDF window under Regulation 3(2).
- Late realisation: Ignoring the nine month limit in Regulation 5(1)(a). Ask the AD bank for an extension in time.
- GST assumption: Assuming the code makes the supply a GST export. Check section 2(6) of the IGST Act.
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, Foreign Exchange Transactions Electronic Reporting System (FETERS), purpose code list for receipts, Annex purpose codes, receipts (checked 9 Oct 2026)
- 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 (checked 9 Oct 2026)
- 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); 3(2) (EDF for services within 30 days from end of invoice month); 4(2) (EDPMS closure up to Rs 10 lakh); 5(1)(a) (nine months); 18(2) (FETERS reporting) (checked 9 Oct 2026)
- 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: earlier Master Direction and SOFTEX circulars superseded from October 01, 2026 (checked 9 Oct 2026)
- IGST Act, 2017, Section 2: Definitions (CBIC tax information portal), Section 2(6): definition of export of services (checked 9 Oct 2026)
- IGST Act, 2017, Section 16: Zero rated supply (CBIC tax information portal), Section 16(1)(a), 16(2) and 16(3) (checked 9 Oct 2026)
- 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)
- 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)
Frequently asked questions
Is P0802 or P0807 correct for a software development company?
P0802 is described as software consultancy or implementation, and P0807 as off-site software exports. A company delivering software developed in India to a foreign client often compares both against its invoice. Confirm the choice with your AD bank. Rules can change, so check the linked official sources and your AD bank before acting.
Is SOFTEX still required for software exports?
From 1 October 2026, Circular No. 20 supersedes the SOFTEX circulars and the EDF applies to software exports. Earlier SOFTEX filings remain part of the record for older invoices. Check with your AD bank for pending cases. Rules can change, so check the linked official sources and your AD bank before acting.
Does a software export purpose code affect FIRA?
The code is normally recorded on the inward remittance advice or FIRA your bank issues. Formats differ by bank. Keep the advice with the invoice and EDF so the three documents match. Rules can change, so check the linked official sources and your AD bank before acting.
Can software maintenance use the same code as development?
Support and maintenance has its own line, P0804, described as repair and maintenance of computer and software. If a contract mixes development and maintenance, ask the AD bank whether to split the invoice lines. Rules can change, so check the linked official sources and your AD bank before acting.
Does the purpose code decide whether software exports are zero rated for GST?
No. Zero rating under section 16 of the IGST Act depends on the supply meeting the conditions of section 2(6). A registered exporter may supply under a Letter of Undertaking. See the linked GST page. Rules can change, so check the linked official sources and your AD bank before acting.
How long does a software exporter have to receive payment?
Regulation 5(1)(a) of the 2026 regulations requires realisation within nine months from the date of invoice, or twelve months where invoiced or settled in rupees. The AD bank may extend the period on request. Rules can change, so check the linked official sources and your AD bank before acting.