What Is the Purpose Code for Upwork and Fiverr Payments?
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
- Published:
- Last modified:
Short answer
There is no single purpose code for Upwork or Fiverr payments. Choose the RBI purpose code that matches the service you sold. Software consultancy or implementation uses P0802, business and management consultancy uses P1006, and other services not included elsewhere use P1099. Your AD bank may ask for the invoice to confirm.
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| Indian freelancers paid by foreign clients through freelance marketplaces | RBI FETERS purpose code list (Circular No. 84, 2012) and the FEMA export regulations, 2026 | Realisation within nine months of invoice, or twelve months if invoiced or settled in rupees | Wrong or missing purpose details can lead to bank queries; FEMA penalties apply to contraventions | 9 Oct 2026 |
Which purpose code applies to Upwork and Fiverr payments?
The purpose code depends on the service delivered, not on the marketplace that carried the payment. RBI's FETERS list has no entry named after any marketplace, so every freelancer picks the code whose description fits the work in the client invoice.
- Software work: P0802 reads "Software consultancy/implementation (other than those covered in SOFTEX form)". P0807 reads "Off site software exports" (RBI FETERS list).
- Consulting: P1006 reads "Business and management consultancy and public relations services" (RBI FETERS list).
- Marketing work: P1007 reads "Advertising, trade fair service" and P1016 reads "Market research and public opinion polling service" (RBI FETERS list).
- Residual code: P1099 reads "Other services not included elsewhere" (RBI FETERS list). It is the residual code for work no other description fits.
- SOFTEX: SOFTEX is replaced by the EDF for software from 1 October 2026 (A.P. (DIR Series) Circular No. 20). The P0802 description still refers to SOFTEX because the 2012 list has not changed.
For the full list, see RBI purpose codes list for exporters and freelancers. For the wider question, see purpose code for freelancers.
Which purpose code suits which kind of freelance work on Upwork and Fiverr?
Match the code to the main service on the invoice. The table shows the nearest FETERS description for common freelance work. The list does not name graphic design, writing or video editing, so confirm the closest fit with your AD bank.
| Type of work | Nearest code | Why | Best for |
|---|---|---|---|
| Web or app development | P0802 or P0807 | Software consultancy or off site software exports (FETERS list) | Developers and software consultants |
| Business or management consulting | P1006 | Description covers business and management consultancy | Consultants and strategy advisers |
| Advertising or campaign work | P1007 | Description covers advertising | Marketing freelancers |
| Surveys and market research | P1016 | Description covers market research and public opinion polling | Research freelancers |
| Work that fits no listed description | P1099 | Residual code for other services | Writers, designers and editors when the bank has no closer code |
How do you select the purpose code on a bank or marketplace dashboard?
Pick the code in the field that asks for the purpose of the inward remittance. Banks and payment dashboards show the same FETERS codes. Choose the one that matches your invoice and use the same code for every payment for that work.
- Read the service line on your invoice or contract and find the closest description in the FETERS list.
- Open the withdrawal or remittance screen offered by your bank or payout provider and find the purpose field.
- Enter the code that matches. If only a text list is shown, pick the entry with the same wording.
- If the screen offers no suitable choice, ask your AD bank which code it accepts and note the answer.
- Download the inward remittance advice after credit and check that the purpose matches the invoice.
- Keep the invoice, contract and advice together for GST, income tax and bank queries.
How does GST apply to Upwork and Fiverr payments for Indian freelancers?
A service is an export under GST only if all five conditions in section 2(6) of the IGST Act are met. These include a recipient outside India, a place of supply outside India and payment in convertible foreign exchange. The purpose code does not decide GST status.
- Export of services is a zero rated supply under section 16(1) of the IGST Act.
- A registered person can export without paying IGST under a Letter of Undertaking filed as FORM GST RFD-11.
- See GST on export of services and GST registration for freelancers.
Does the purpose code appear on the FIRA for Upwork and Fiverr payments?
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. See how to get FIRA as a freelancer and what is FIRA.
- A code that does not match the invoice can lead to queries from the bank or a tax officer.
Which codes are often confused with each other for freelance marketplace payments?
Freelancers most often confuse P0802, P0807, P1006 and P1099. The table shows the verbatim RBI description and when each fits.
| Code | RBI description | Typical use | Best for |
|---|---|---|---|
| P0802 | Software consultancy/implementation (other than those covered in SOFTEX form) | Software consulting or implementation for a client | Developers on project contracts |
| P0807 | Off site software exports | Software built or delivered off site for a foreign client | Developers who deliver finished software |
| P1006 | Business and management consultancy and public relations services | Advisory and PR work | Consultants and PR freelancers |
| P1007 | Advertising, trade fair service | Advertising and trade fair services | Marketing freelancers |
| P1099 | Other services not included elsewhere | Work that no other description covers | Freelancers with no closer match |
What happens if the wrong purpose code is used for a marketplace payment?
A wrong code mainly creates mismatches between the invoice, the bank record and later tax filings. RBI's FETERS data feeds balance of payments reporting, so the AD bank may ask for clarification or correction.
- Bank query: The AD bank may ask for the invoice or contract to confirm the purpose.
- Records mismatch: The code on the advice may not match the service in your GST or income tax records.
- FEMA: A contravention of a FEMA regulation can attract penalty, so correct errors early.
Write to your AD bank with the invoice and ask for correction. See how to correct a wrong purpose code or FIRA after payment and what happens if you use the wrong purpose code.
Which RBI rules sit behind the purpose code for freelance marketplace payments?
Two RBI texts matter. The FETERS list gives the codes, and the 2026 FEMA export regulations set the export declaration and realisation rules for the same payment.
| 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(2) | In force 1 October 2026 | Services EDF within 30 days from the end of the invoice month | Freelancers invoicing monthly |
| 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 | SOFTEX replaced by EDF from 1 October 2026 | Software freelancers |
What mistakes do freelancers make when choosing a purpose code for marketplace payments?
- Code by platform: Looking for a code named after the marketplace. None exists, so use the service code.
- Skipping the invoice: Choosing a code without checking the service line on the invoice.
- Mixed services: Using one code for software and consulting invoices without checking each.
- Old SOFTEX habit: Assuming a SOFTEX form is still needed. The EDF replaces it from 1 October 2026.
- No copies: Not downloading the remittance advice and invoice after credit.
- Silent errors: Leaving a wrong code uncorrected until a tax notice or bank query arrives.
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)
Frequently asked questions
Is there a separate RBI purpose code for Upwork income?
No. RBI's FETERS list has no code named after Upwork or any other marketplace. Use the code that matches the service you invoiced, such as P0802 for software consultancy or P1006 for business consultancy. If nothing fits, P1099 is the residual code.
Which purpose code should a Fiverr designer use for inward payments?
The FETERS list has no code named for graphic design. P1099 covers other services not included elsewhere, and P1007 covers advertising. Ask your AD bank which one it accepts for design work, and keep the invoice that describes the service.
Can a software developer use P0802 for marketplace payments?
P0802 is described as software consultancy and implementation other than those covered in SOFTEX form. Developers doing consulting or implementation work for foreign clients commonly fit it. If you deliver finished software off site, compare P0807. Confirm the choice with your AD bank.
Does the purpose code change the GST position of marketplace earnings?
No. GST status turns on the five conditions in section 2(6) of the IGST Act, including place of supply and payment in convertible foreign exchange. The purpose code only records the nature of the receipt. Check your position with a tax professional.
Is the SOFTEX form still needed for freelancers on marketplaces?
SOFTEX is replaced by the EDF for software from 1 October 2026 under RBI Circular No. 20. A freelancer should check with the AD bank how the EDF applies to the account used. See the linked guide on SOFTEX for freelancers.
What should a freelancer do if the marketplace payout screen shows no matching code?
Ask your AD bank which FETERS code it accepts for the service and note the answer in writing. Keep the invoice and contract. If a wrong code was already used, request correction with the invoice attached.