How should a SaaS company in India receive payments from foreign customers?

Indian SaaS companies sell into the US, Europe and the Gulf from day one. A Pune HR-tech company charging US small businesses a monthly fee by card, a Chennai developer-tools company selling annual enterprise plans to a German bank by invoice, and a two-founder Jaipur team selling a Shopify plugin through the app marketplace all earn export income, but each one meets different rules on the way.

This page covers collection routes, platforms, the GST traps specific to SaaS, purpose codes, the EDF and realisation, income tax and transfer pricing. It links to the deep guides rather than repeating them, and it is general information: confirm your own set-up with a chartered accountant (CA).

How do international clients pay SaaS companies in India?

International customers pay SaaS companies in India in three main ways, and most companies end up using more than one: cards on self-serve plans, invoices for annual or enterprise plans, and merchant of record or marketplace payouts.

• Cards on self-serve plans: Collected through a payment gateway or cross-border payment aggregator (PA-CB). RBI caps PA-CB export transactions at ₹25 lakh per transaction.¹³
• Invoices for annual or enterprise plans: Paid by bank wire or local transfer into a collection account.
• Merchant of record or marketplace payouts: The platform sells to the end user and pays you a net amount.

For example, the Pune HR-tech company collects monthly card payments, the Chennai company invoices the German bank annually, and the Jaipur team receives app marketplace payouts.

Where does the money go between a foreign client and the Indian bank account of SaaS companies in India?

The money from a foreign client reaches SaaS companies in India through their Indian bank, the authorised dealer (AD) bank, either directly as a wire or through a payment provider that collects it first. The AD bank may credit the export proceeds only after satisfying itself that the transaction is genuine, and it updates the export entry in the Export Data Processing and Monitoring System (EDPMS) at the same time.¹⁷

• Direct wire: The client's bank sends the payment to the AD bank, which credits rupees and reports the transaction, with its purpose code, in RBI's Foreign Exchange Transaction Electronic Reporting System (FETERS).¹⁷
• Payment provider: A cross-border payment aggregator (PA-CB) collects the payment and pays it to the AD bank, and must give the AD bank the documents or information the exporter needs.¹³
• Proof of receipt: Banks send electronic inward remittance messages (IRMs) to DGFT, and the exporter self-certifies an e-BRC against them.¹⁸

Whichever route the client uses, the AD bank is where the export is recorded, so the invoice, purpose code and EDF all meet there.

What are the ways for SaaS companies in India to receive international payments?

SaaS companies in India can receive international payments by SWIFT wire to an Indian bank, through local account details from a payment provider, and through PayPal, card or payment links, and through merchant of record or app marketplace payouts. Each route differs in who sets the cost and what proof of receipt you get.

How does a SWIFT wire to an Indian bank work for SaaS companies in India?

A SWIFT wire sends the client's payment from its bank to the Indian AD bank of SaaS companies in India, which credits rupees once it is satisfied the transaction is genuine.¹⁷

• How it works: You give the client your bank's SWIFT details; the client's bank sends the payment, and your bank converts it and reports it with a purpose code.¹⁷
• Pros: No third-party account to open; the bank's IRM lets you self-certify an e-BRC on DGFT.¹⁸
• Cons: Charges and the exchange rate vary from bank to bank, so compare your bank's published charges.¹⁷
• Cost: As set in the bank's published policy, which must list charges for each process and keep them reasonable and proportional.¹⁷
• Settlement: Depends on the banks involved and is not fixed in advance.
• FIRA: Ask your bank how it issues a FIRA or e-FIRC; the e-BRC comes from its IRM data.¹⁸
• Ideal for: Annual and enterprise plans invoiced to larger customers.

How do local account details from a payment provider work for SaaS companies in India?

Local account details let a foreign client pay SaaS companies in India by a domestic transfer in its own country, after which the provider converts the money and pays rupees into the Indian bank account.

• How it works: A cross-border payment aggregator (PA-CB) or similar provider collects the payment and passes the documents your AD bank needs.¹³
• Pros: The client pays as it pays a local supplier.
• Cons: Each PA-CB transaction is capped at ₹25 lakh, and providers differ in who can sign up.¹³
• Cost: The provider's published fee and FX markup; the calculator at the top of this page compares them.
• Settlement: The provider's published settlement time.
• FIRA: Check whether the provider issues a FIRA or e-FIRC for every payment.
• Ideal for: Enterprise or mid-market customers in the US, UK or Europe paying invoices by domestic transfer.

How do PayPal, card payments and payment links work for SaaS companies in India?

PayPal, card payments and payment links let a client pay SaaS companies in India by card or wallet, and the provider settles rupees to the Indian bank account.

• How it works: You send a payment link or invoice; the client pays by card or PayPal balance.
• Pros: Familiar to small clients and individuals.
• Cons: Providers price card and PayPal routes separately from bank transfers, so the same invoice can cost more.
• Cost: The provider's published card or PayPal fee; see the calculator.
• Settlement: The provider's published settlement time.
• FIRA: Check what the provider issues for each payment.
• Ideal for: Self-serve monthly and annual plans.

How do merchant of record and app marketplace payouts work for SaaS companies?

Merchant of record and app marketplace payouts reach SaaS companies when a platform sells the product to end users in its own name and pays the company a net amount.

• How it works: The platform bills subscribers as the seller and pays out to your bank account or a supported provider.
• Pros: One counterparty instead of thousands of subscribers.
• Cons: Your customer may be the platform, not the end user, which changes the export analysis. See merchant of record in India.
• Ideal for: Plugins and apps sold through a marketplace, and small teams that do not want to bill subscribers directly.

Which platforms are best for SaaS companies in India?

The platforms that suit SaaS companies in India depend on how their clients pay: by bank transfer, card, PayPal balance or a marketplace payout. The table lists the providers in this site's USD cost model, ordered by estimated cost on published fees, cheapest first, with providers that do not publish enough pricing to estimate listed after, A to Z.

The platform cost comparison and how to choose a payment platform apply the same criteria to every provider.

How much INR do SaaS companies in India receive on $2,000, $5,000 and $10,000?

The INR that SaaS companies in India receive on these three invoice sizes depends on each provider's published fees and conversion markup, and the table below works it out at today's exchange rate.

Note: A single payment through a PA-CB cannot exceed ₹25 lakh, for inward and outward transactions alike.¹³ Check how a provider handles an invoice above that limit before you send it.

What should SaaS companies in India look for beyond cost?

Beyond cost, SaaS companies in India should check proof of receipt, purpose code handling, settlement time, eligibility and regulatory status, because these decide whether a payment closes cleanly with the bank and the GST return.

• FIRA: Whether the provider issues a FIRA or e-FIRC for every payment, and at what cost.
• Purpose code: Whether you can set the purpose code per payment, for example P0802 or P0807 for subscriptions, as agreed with your bank.⁸
• Fees and FX: The fee it publishes and its FX markup over the mid-market rate.
• Settlement: How long money takes to reach your Indian account.
• Eligibility and limits: Who can sign up (individual, proprietor, partnership, company) and per-transaction limits.
• Regulatory status: Whether the provider is authorised, which you can check against RBI's payment aggregator list.

The compare hub applies the same tests to each provider.

Recurring billing, refund handling and chargeback rules also matter for subscriptions. Use best payment platform for SaaS; card payments for exports and chargebacks have their own guides.

What compliance documents do SaaS companies need?

SaaS companies exporting subscriptions need a monthly Export Declaration Form (EDF), the right purpose code, an LUT, compliant export invoices and e-invoices where required, and a FIRA or settlement report for each payout, and they must realise each invoice within nine months.¹⁰¹¹

When is a SaaS subscription sold abroad an export of services?

A SaaS subscription is an export of services when all five conditions in section 2(6) of the IGST Act hold: you are in India, the customer is outside India, the place of supply is outside India, payment comes in convertible foreign exchange (or rupees where the RBI permits), and you are not billing your own establishment.¹ Exports are zero-rated under section 16.³

Most SaaS is an online information and database access or retrieval (OIDAR) service, because section 2(17) expressly lists "providing cloud services" and software supplied over the internet.¹ For OIDAR, section 13(12) makes the place of supply the location of the recipient.² So the customer's location decides almost everything.

Which SaaS situations are GST traps?

• Consumer subscribers: An individual has no business address, so the law looks to the usual place of residence.¹ Keep billing address, card country and IP records. Section 13(12) treats a recipient as located in India if any two non-contradictory indicators, such as card country and IP address, point to India.²
• Indian customers on the same plan: Sign-ups from India are domestic supplies. Your billing system needs to charge GST to them and not to foreign subscribers.²
• Marketplaces and merchants of record: If an app marketplace or merchant of record resells your product in its own name, your customer may be the platform, not the end user. See merchant of record in India.
• Your own foreign branch: Billing a branch fails condition (v). A separately incorporated foreign subsidiary or parent can qualify.¹⁵

Read GST on SaaS sold to foreign customers and OIDAR services under GST for the detail. Registered exporters file an LUT and use the rule 46 endorsement on invoices; companies above ₹5 crore aggregate turnover also generate e-invoices.⁴⁶¹⁶ If a subscriber's invoice under LUT stays unpaid for a year from its date, or for the period allowed under FEMA including any RBI-permitted extension if that is later, rule 96A makes IGST with interest payable.¹⁶

Which RBI purpose codes fit SaaS receipts?

SaaS receipts are usually reported under one of the computer services codes in RBI's list under A.P. (DIR Series) Circular No. 84.⁷⁹

Descriptions are as reproduced by HDFC Bank and DGFT.⁸⁹ DGFT maps SAC 998434 (software downloads) and the IT services SACs to both P0802 and P0807, labelling P0807 "Softex IT".⁸ The SOFTEX circulars were superseded from 1 October 2026,¹² and no revised description has been published, so whether a bank now prefers P0802 or P0807 is unclear. Agree the code with your bank. See purpose code for SaaS and P0802 vs P0807.

What does the EDF mean for SaaS revenue?

The EDF applies to SaaS because the 2026 Regulations define software as "any computer programme, database, drawing, design, audio/video signals, any information by whatever name called" on a medium other than a physical one, and say "services" includes software.¹⁰

• Deadline: A software exporter files the EDF within 30 days from the end of the month of invoicing; the payment-date option is only for services other than software.¹⁰
• One EDF a month: A single EDF can cover all of a month's exports, which matters when you raise hundreds of subscription invoices.¹⁰
• Who receives it: For software from the Domestic Tariff Area, the specified authority is an AD bank or STPI; in an SEZ, the Development Commissioner.¹⁰

Each invoice must be realised within nine months from its date, or twelve months if invoiced in rupees.¹¹ Banks publish their own EDF procedures under regulation 19.¹⁰ How EDFs reconcile with thousands of small card payments settled by an aggregator is not yet settled in practice; ask your bank and aggregator. See EDF for service exporters and the export realisation period.

Do STPI or SEZ registration matter for a SaaS company?

STPI and SEZ registration are optional structures for a SaaS company that exports. They change who certifies your EDF: STPI for STP units, the Development Commissioner in an SEZ.¹⁰ See STPI registration for software exporters and export to SEZ units for when each fits.

What should a SaaS company set up before billing abroad?

• Customer location: Tag every customer as India or abroad, using billing address, card country and IP.²
• GST: Register for GST and file an LUT before the first export invoice, and check the rule 46 endorsement in your billing tool.⁴¹⁶
• Bank process: Agree the purpose code and the monthly EDF process with your bank.¹⁰
• Realisation: Track every invoice against the nine-month realisation deadline.¹¹
• Proof of receipt: Keep a FIRA or settlement report for each payout, matched to invoices.
• Group pricing: Document arm's length pricing for any intra-group billing.¹⁵

What tax applies to international income for SaaS companies?

Income tax on a SaaS business's international income depends on the entity, under the Income-tax Act, 2025, which applies from tax year 2026-27.¹⁴

The professional row of section 58 covers resident individuals and firms other than LLPs, with gross receipts up to ₹50 lakh, or ₹75 lakh where cash receipts are within 5%.¹⁴ Information technology is a specified profession, but whether selling subscriptions to your own product is a profession or a business depends on the facts; see section 62 specified professions and confirm with a CA.

What if the SaaS company has a foreign parent or subsidiary?

A SaaS company with a foreign parent or subsidiary must price intra-group billing at arm's length. Many SaaS companies have a US parent and an Indian operating subsidiary that bills the parent for development or for the product. Section 161(1) of the Income-tax Act, 2025 requires income from an international transaction to be determined having regard to the arm's length price.¹⁵ For GST, the subsidiary-to-parent supply can be an export under Circular No. 161/17/2021-GST.⁵ See transfer pricing for Indian subsidiaries and receiving payment from a foreign parent.