My bank used P1099 instead of P0802. Does it matter?
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Short answer
It can. P1099 is RBI's residual code, "Other services not included elsewhere", while P0802 is "Software consultancy/implementation (other than those covered in SOFTEX form)".1 DGFT's e-BRC rules accept only P0802, P0803, P0807 and P0103 for IT services and show only invoices whose SAC matches the service, so a software receipt reported under P1099 may block your e-BRC until the bank amends the inward remittance message.23
A purpose code is the five-character code ("P" plus four digits) a bank attaches to a foreign payment to say what it was for. If you are a developer or IT firm and your bank tagged a client payment as P1099 instead of P0802, the money is still yours, but the paperwork may not line up.1
What do the two codes mean?
In RBI's receipt purpose code list, as reproduced by HDFC Bank:1
| Code | RBI description |
|---|---|
| P0802 | Software consultancy/implementation (other than those covered in SOFTEX form) |
| P1099 | Other services not included elsewhere |
P1099 is the catch-all for services that no specific code describes. Software development and implementation has its own code, so P1099 understates what the payment was for.1
Why does the code matter?
The main documented effect is on the e-BRC, the electronic Bank Realisation Certificate you self-generate on the DGFT portal. DGFT's rules say that for Services > IT only four purpose codes apply: P0802, P0803, P0807 and P0103.2 They also say exporters can view and attach only invoices whose SAC codes match the description of the service.2 A receipt tagged P1099 against an invoice for software development may therefore not be usable for an IT services e-BRC, and DGFT's FAQs say an e-BRC cannot be generated without the bank's inward remittance message (IRM), so the IRM itself has to carry the right code.3
The e-BRC or a remittance certificate is often what a GST refund claim or an export incentive relies on, so a mismatch can hold those up. See wrong purpose code consequences.
How do you get it corrected?
Ask the bank that credited the payment to amend the code. DGFT's FAQs say banks have the authority to amend the IRM and communicate the updated details.3 Steps:
- Write to the bank with the remittance reference, date and amount.
- Attach the invoice and contract showing software work.
- Ask it to change the code from P1099 to P0802 and send an amended IRM to DGFT.3
- Check the DGFT portal for the amended IRM before generating the e-BRC.
If you already generated an e-BRC on the wrong code, DGFT's FAQs say you can cancel it yourself within 120 days of generation; after that, the bank flags it and cancels it at your request.3
How do you stop it happening again?
Tell your bank the code in writing for each client, or set it as a default where your platform allows. The full correction process, including platform payouts, is in correcting a purpose code after payment. Ask your bank about its own time limit for amendments.
How did we verify this?
We checked this page against the sources below on 28 October 2026. Read our methodology or report an error.
- [1]HDFC Bank: Inward Remittance Purpose Codes (bank reproduction of the RBI purpose code list under A.P. (DIR Series) Circular No. 84 of 29 February 2012, checked 28 October 2026)
- [2]DGFT: eBRC generation rules, General Guidelines for Generating eBRC (checked 28 October 2026)
- [3]DGFT: FAQs (Self-Generation of eBRC), Version 1.0, March 2024, questions 28, 29, 80 and 81
Frequently asked questions
Is there a penalty for a receipt reported under P1099?+
We found no RBI or DGFT document that sets a specific penalty for a wrong purpose code on an export receipt. The documented effect is on e-BRC generation.23
Can I fix the code on the DGFT portal myself?+
No. DGFT's FAQs say banks have the authority to amend the inward remittance message and communicate the updated details.3
When is P1099 the right code?+
When no specific code describes the service, since P1099 covers other services not included elsewhere.1 Ask your bank before using it for software work.
This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.
Keep reading
How do you correct a wrong purpose code after a foreign payment has been credited?
Steps to change a wrong purpose code on a foreign payment already credited: ask the bank to amend the IRM, fix any e-BRC, and handle platform payouts like Upwork.
Purpose codesWhat happens if a foreign payment is received under the wrong purpose code?
What RBI, DGFT and banks say happens when a foreign receipt carries the wrong purpose code: e-BRC blocks, mismatched GST evidence, and amendment deadlines.
Purpose codesWhat is purpose code P0802?
P0802 is the RBI receipt purpose code for software consultancy and implementation. Who uses it, how it differs from P0807, and what SOFTEX ending means.
RBI and FEMAHow do you generate an e-BRC on the DGFT portal for exported services?
Step-by-step guide to self-generating an e-BRC on the DGFT portal for service exports: IEC link, IRMs, IT vs non-IT rules, SAC codes, mode of export, bulk upload.