What is purpose code P0304?

Purpose code P0304 is the medical travel code in RBI's travel group. It records money that reaches India because a foreign patient travels here for treatment, including travellers' cheques that hospitals buy.⁴⁵ Doctors and therapists who treat foreign patients remotely have a different, more specific code, so the difference matters.

What does the P0304 purpose code cover?

The P0304 purpose code covers receipts linked to travel for medical treatment in India, including travellers' cheques purchased by hospitals.⁴⁵ DGFT's purpose code to SAC mapping reproduces the same wording.²

• Official description: "Travel for medical treatment including TCs purchased by hospitals".⁴⁵
• BOP group: P03, "Travel".⁴
• Direction: receipt, meaning money coming into India.¹
• Source list: A.P. (DIR Series) Circular No. 84 dated 29 February 2012 told banks to report all foreign exchange transactions under a revised purpose code list from April 2012.¹

RBI's annex PDF showed a captcha page when this page was checked, so the wording above is quoted from the HDFC Bank and DBS Bank India reproductions, which match each other word for word.⁴⁵

When should you use the P0304 purpose code?

Use the P0304 purpose code when the payment is connected to a foreign patient's trip to India for treatment.⁴

• Patient's trip: the visitor came to India for medical treatment.
• Hospital purchases: hospitals buy travellers' cheques from patients.

Where the payment is for the health service itself, the current list has P1108: "Health Service (Receipts on account of services provided by Indian hospitals, doctors, nurses, paramedical and similar services etc. rendered remotely or on-site)".⁴ Ask your bank which it expects when one invoice covers both treatment and travel services.

Who uses the P0304 purpose code?

The P0304 purpose code is used by businesses paid in connection with foreign patients' trips to India.⁴ DGFT's mapping links P0304 to reservation services, tour operator and tourist guide services, tourism promotion and, in Version 1.0, veterinary services.²

• Hospitals and clinics: admit overseas patients.
• Medical travel facilitators: arrange patients' stays and bookings.
• Travel businesses: book transport and accommodation for patients.

A physiotherapist running video sessions for clients abroad, or a radiologist reporting scans for a foreign hospital, is described by P1108 rather than P0304.⁴

What transactions are covered under P0304?

Transactions covered under P0304 are payments linked to travel for medical treatment.⁴

• Hospital admission: For example, a hospital in Chennai receives a transfer from an overseas patient travelling for surgery.
• Travellers' cheques: For example, a hospital buys travellers' cheques from a foreign patient, which the description names.⁴
• Facilitation: For example, a medical travel facilitator books a patient's flights and hotel, matching SACs 998551 and 998552 in DGFT's mapping.²
• Guide services: For example, a tourist guide accompanies a foreign patient's family, matching SAC 998556.²

Each example is linked to a patient's trip to India.

When should you not use the P0304 purpose code?

Do not use the P0304 purpose code for the health service itself or for other kinds of trips.⁴⁵

• Remote or on-site health services: use P1108, "Health Service (Receipts on account of services provided by Indian hospitals, doctors, nurses, paramedical and similar services etc. rendered remotely or on-site)".⁴
• Business visitors: use P0302, "Business travel".⁴
• Students: use P0305, "Travel for education including TCs purchased by educational institutions".⁴
• General travel spending: use P0301 or P0306.⁴

Compare the travel and health codes before you tell the bank the purpose.

What documents are required for P0304?

No RBI document lists papers specific to P0304; your bank's own policy sets them. The FEMA (Export and Import of Goods and Services) Regulations, 2026 require each bank to have a policy and standard operating procedure listing documents, timelines and charges, published on its website.⁶

• Invoice: a service description and Services Accounting Code (SAC) that match the P0304 description. DGFT says you must choose the SAC that corresponds to the purpose code when you generate an electronic Bank Realisation Certificate (e-BRC).³
• Export Declaration Form (EDF): where the receipt is for an export of services, the 2026 Regulations ask every exporter of services to give an EDF to the specified authority, usually the AD bank, within 30 days from the end of the month of invoicing.⁶
• Bank record: the bank's credit advice or Foreign Inward Remittance Advice (FIRA) showing the code it reported.

DGFT's purpose code to SAC mapping (Version 1.0, 10 November 2023) lists these SACs against P0304:²

In Version 1.0 of the mapping, hospital and medical SACs such as inpatient services are mapped to P1108, while P0304 is mapped to the reservation, tour, tourism and veterinary SACs above.²

The mapping is many-to-many, so the same SAC can appear against several purpose codes.²

How do you declare the P0304 purpose code?

You declare the P0304 purpose code by telling your bank the purpose when the payment arrives, then using the matching SAC for the e-BRC.¹³

1. Match the work to the description: Compare what the client pays for with the RBI description of P0304, "Travel for medical treatment including TCs purchased by hospitals", and with the codes listed under related codes below.⁴
2. Put the matching SAC on the invoice: Use a SAC that DGFT's mapping lists against P0304, so the invoice can later be linked to the payment on the DGFT portal.²
3. Tell the bank or payer the code: Give P0304 to your bank, or to the platform or payer that asks for a purpose, before the money is credited.¹
4. Check the credit advice: Check that the bank's credit advice or FIRA shows P0304, and ask the bank to amend it straight away if it does not.³
5. Generate the e-BRC: On the DGFT portal, link the bank's inward remittance message (IRM) to your invoice and choose the SAC that corresponds to P0304.⁹³

Banks report the code they record, so the code on the bank's record is the one that counts.

How does the P0304 purpose code affect FIRA, GST and income tax?

The P0304 purpose code is a reporting code under RBI's FETERS reporting for travel receipts.¹⁴

• FIRA and e-BRC: the e-BRC is now self-generated by the exporter on the DGFT portal from the inward remittance message (IRM) data the bank sends, and DGFT says you choose the SAC that corresponds to the purpose code on the remittance.⁹³ Check that the bank's FIRA or credit advice shows P0304 before you use it as payment evidence.
• GST: a supply is an export of services only when all five conditions of section 2(6) of the IGST Act are met, including a place of supply outside India.⁷ Under section 13(4) of the IGST Act, accommodation by a hotel, inn, guest house, club or campsite has its place of supply where the property is located, so a stay in an Indian hotel does not meet that condition.⁸⁷
• Income tax: the Income-tax Act, 2025 has applied from 1 April 2026, and tax year 2026-27 runs from 1 April 2026 to 31 March 2027.¹⁰ Income tax is worked out on the income under that Act.

How GST and income tax apply depends on your contract and facts, so confirm with a chartered accountant.

What are the common mistakes with the P0304 purpose code?

The common mistakes with the P0304 purpose code come from mixing up the patient's trip with the treatment.⁴

• Using P0304 for online consultations: remote health services are described by P1108.⁴
• Using P0304 for hospital treatment SACs: DGFT maps inpatient and medical SACs to P1108.²
• Using P0304 for business or study visitors: P0302 and P0305 cover those trips.⁴
• Choosing an unmapped SAC: DGFT says you must choose the SAC that corresponds to the purpose code on the remittance.³

To fix a wrong code, ask the bank that credited the payment. DGFT's eBRC FAQs say exporters must contact the bank to request a purpose code change, and that banks can amend the IRM they report to DGFT.³ The full steps are in how to correct a purpose code after payment.

Which purpose codes are related to P0304?

P0304 is about the patient's trip, while P1108 is about the health service itself; the table compares them with the other travel codes.⁴⁵

To compare every receipt code, see the RBI purpose codes list for exporters, or shortlist codes with the purpose code finder. Where a payment could fit more than one description, confirm the code with your bank or a chartered accountant before the money is credited.