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PayPal, Wise or Payoneer: What FIRC and GST Rules Mean for Web Developers Getting Paid Abroad

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Editorial team, serviceexportguide.com
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Short answer

Website work for a client outside India is usually an export of services under section 2(6) of the IGST Act.12 A developer making only inter-State taxable supplies needn't register for GST up to ₹20 lakh turnover.17 PayPal, Wise and Payoneer each publish a free digital FIRA or e-FIRC in 2026 (Wise's on its India receive pricing page; its India help article gives a 2 USD equivalent fee per transfer to the INR account).32373940 From 1 October 2026 each export invoice needs an EDF.1

Applies toRules involvedPlatforms comparedLast verified
Indian freelance web developers and small studios paid by clients abroad12IGST Act sections 2(6) and 16; Notification No. 10/2017-Integrated Tax; CGST rule 96A; FEMA Export and Import Regulations, 2026112131417Razorpay, Karbon Business, Skydo, Payoneer, PayPal, Wise22242730353931 October 2026

1,000 USD = ₹94,243 at the reference rate for 13 November 2026 (European Central Bank data).

Estimated rupees received, on published fees

Sorted by estimated rupees received, highest first. Only providers that publish both their fee and their conversion markup for this currency and method can be estimated.

#Provider and routeBest forFee (+GST)MarkupYou receiveCost
1Karbon BusinessLowest estimated costBank transfer to a Karbon virtual USD accountUS bank transfers and marketplace payouts₹942plus GST, rate not stated0%₹93,131 to ₹93,3011.00 to 1.18%
2RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)Local transfers from the US, UK and eurozone₹1,000plus GST, rate not stated0%₹93,063 to ₹93,2431.06 to 1.25%
3WinvestaGlobal Collections Account, standard plan (up to 2,000 a month per currency)Local transfers with a published per-payment fee₹1,4350%₹92,8091.52%
4SkydoPayment link (InstaLinks) paid by ACH debitLocal bank transfers from major markets₹1,885plus GST, rate not stated0%₹92,019 to ₹92,3582.00 to 2.36%
5PayoneerLocal bank transfer to Payoneer receiving account detailsMarketplace payouts such as Amazon or Upwork₹0no GST stated1 to 4%₹90,473 to ₹93,3011.00 to 4.00%
6PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)Clients paying by card or PayPal balance₹4,175no GST stated3 to 4%₹86,465 to ₹87,3667.30 to 8.25%

Not estimated because pricing is not fully published: Cashfree Payments, Dodo Payments, PingPong, Stripe, Tazapay, TransFi, Wise.

Where a provider says GST applies to its fee but not at what rate, the range runs from no GST to 18%, the rate Skydo, Stripe and Winvesta state on their pages. Estimates use each provider's published fee, conversion markup, GST on fees and FIRA charge, checked 2026-10-28, against the reference rate. They exclude charges taken by intermediary banks and your own bank, and the rate a provider actually applies at the time of conversion. Check the provider's pricing page before you choose. The order is calculated only from these published numbers; no provider can pay to change its position, and there are no affiliate links.

A Coimbatore freelancer building a Shopify store for a Florida boutique, or an Indore developer maintaining WordPress sites for a Sydney agency, is exporting a service each month. PayPal, Wise and Payoneer are the usual first choices, and each produces a different inward remittance document for the same GST and RBI rules.323739

This page compares those three with the lowest-cost providers on published fees, then covers the rules, purpose codes and documents. Studios with staff should also read international payments for web development agencies. Confirm your position with a chartered accountant (CA).

How do PayPal, Wise and Payoneer compare for web developers?

PayPal, Wise and Payoneer compare as follows for web developers: PayPal charges 4.40% plus a fixed fee with a 3.0% or 4.00% conversion spread, Payoneer charges 1% to 4% to withdraw in INR, and Wise charges a 2 USD equivalent per INR transfer (India help article; its India receive pricing page describes a free e-FIRC).30353940 Razorpay, Karbon Business and Skydo are the three lowest-cost providers for a $2,000 USD receipt on published fees.222527

The table is sorted by estimated cost on a $2,000 USD receipt, cheapest first; Wise follows because it publishes no INR conversion percentage.40

PlatformBest forFeeFX markupSettlementFIRARBI PA-CB statusSource
RazorpayLocal transfers from the US, UK and eurozoneMoneySaver bank transfer 1%, flat ₹1,000 below ₹1,00,000; GST applies0% on MoneySaver transfersT+1 for push bank transfersFIRS emailed within 24 hours of settlementAuthorised PA-CB, inward and outward62223
Karbon BusinessUS bank transfers and marketplace payouts1% transaction fee listed on its PayPal comparison page0% (freelancer page); 0.5% to 1.0% (PayPal alternative page)24 to 48 hoursFIRA for every transaction from an unnamed partner bankNot on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB6242526
SkydoLocal bank transfers from major marketsUSD 19 + GST up to USD 2,000; USD 29 + GST to USD 10,000; 0.3% + GST above0% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)Within 24 hours (product page); T+1 to T+3 business days (terms)Free FIRA on every paymentAuthorised PA-CB, inward and outward, 8 January 2026627282943
PayoneerMarketplace payouts such as Amazon or UpworkFree to receive (multi-currency account page); fixed fee or 1% for non-local currencies (pricing page); card payment request 2.90% + $0.49INR withdrawal 1% to 4%, shown in the accountWithin 24 hours (multi-currency account page); within 48 hours (pricing page)Free digital FIRA per transaction from a partner AD bankIn-principle PA-CB authorisation 22 January 2026; not on RBI's authorised list of 16 October 202673031323334
PayPalClients paying by card or PayPal balance4.40% plus a fixed fee, for example 0.30 USD3.0% or 4.00% above the base rateUp to 5 business days to the bankFree weekly digital FIRA from February 2026In-principle authorisation as an existing PA-CB; not on RBI's authorised list of 16 October 2026735363738
WiseBank transfers to local account detailsEquivalent of 2 USD per transfer to the INR account (help article); free e-FIRC (receive pricing page); 18% GST on Wise feesMid-market rate plus a currency-dependent fee; no INR percentage publishedINR in 1 to 2 days after Wise receives fundse-FIRC per transfer within 3 working daysAuthorised PA-CB, inward, 12 March 20266394041

A freelancer without a registered business should check sign-up rules first: Razorpay's MoneySaver form lists Individual as a business type, while Karbon's forex terms require the user to be duly incorporated under Indian law.2326

Which RBI and GST rules apply to web developers paid abroad?

Web developers paid abroad follow the IGST Act and CGST Rules for GST and the FEMA (Export and Import of Goods and Services) Regulations, 2026 (the 2026 Regulations) for the foreign exchange.112

RuleBest for (who it applies to)Plain meaningSource
IGST Act section 2(6)Every developer billing a client abroadSupplier in India, recipient abroad, place of supply abroad, payment in convertible foreign exchange, not establishments of one person12
Notification No. 10/2017-Integrated TaxDevelopers below ₹20 lakh turnoverExempt from GST registration for inter-State taxable services up to ₹20 lakh (₹10 lakh in special category States)17
CGST Act section 2(6)Developers counting turnoverAggregate turnover includes exports18
IGST Act section 16 and FORM GST RFD-11Registered developersExports are zero-rated; an LUT allows invoices without IGST1315
CGST rule 96A(1)(b)Developers under an LUTIGST with interest if payment is not received within one year or the FEMA period, whichever is later14
2026 Regulations, regulations 3 to 5Every developer from 1 October 2026EDF within 30 days from the end of the invoice month; realisation within nine months12
PA Master Direction, paragraph 11(d)Developers paid through a PA-CB₹25 lakh maximum per transaction5

See GST registration for freelancers who export for how to count turnover across Indian and foreign clients.

  • Income tax: Information technology is one of the specified professions in section 62(4) of the Income-tax Act, 2025, which matters for the presumptive scheme for professionals.21
  • Tax year: The Income-tax Act, 2025 replaced "previous year" with "tax year", and tax year 2026-27 runs from 1 April 2026 to 31 March 2027.20
  • Sub-contracting: CBIC Circular No. 159/15/2021-GST explains the scope of "intermediary", which helps a developer working white-label for a foreign agency check that the work is supplied on its own account.19

The section 44ADA calculator shows the presumptive arithmetic once a CA confirms the scheme applies.

Which purpose code applies to a web developer?

A web developer building or customising websites usually reports receipts under P0802, "Software consultancy/implementation (other than those covered in SOFTEX form)".910 Whether P0802 or P0807 is preferred for off-site software after SOFTEX was superseded is not settled, so ask your bank.3

CodeBest for (transaction type)Official RBI descriptionSource
P0802Website builds, custom themes and integrationsSoftware consultancy/implementation (other than those covered in SOFTEX form)910
P0807Software delivered online from IndiaOff-site Software Exports910
P0804Maintenance retainers and bug fixingRepair and maintenance of computer and software910
P1007Landing pages sold as part of an ad campaignAdvertising, trade fair service910

The codes come from RBI Circular No. 84 of 29 February 2012.8 See the P0802 purpose code page.

Which option is cheapest for a web developer at $500, $2,000 and $5,000?

On published fees, local bank transfer providers cost a web developer the least at $2,000 and $5,000, and PayPal costs the most among providers with full published pricing.222735 The table below calculates rupees received at today's rate.

PlatformBest forINR on USD 2,000INR on USD 5,000INR on USD 10,000Cost on USD 5,000
SkydoMost INRTransfer to Skydo local account details or international SWIFT accountLocal bank transfers from major markets₹1,86,373₹4,67,991₹9,39,2060.68%
Karbon BusinessBank transfer to a Karbon virtual USD accountUS bank transfers and marketplace payouts₹1,86,262 to ₹1,86,601₹4,65,655 to ₹4,66,503₹9,31,311 to ₹9,33,0071.00 to 1.18%
RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)Local transfers from the US, UK and eurozone₹1,86,262 to ₹1,86,601₹4,65,655 to ₹4,66,503₹9,31,311 to ₹9,33,0071.00 to 1.18%
PayoneerLocal bank transfer to Payoneer receiving account detailsMarketplace payouts such as Amazon or Upwork₹1,80,947 to ₹1,86,601₹4,52,367 to ₹4,66,503₹9,04,734 to ₹9,33,0071.00 to 4.00%
PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)Clients paying by card or PayPal balance₹1,72,958 to ₹1,74,760₹4,32,436 to ₹4,36,940₹8,64,899 to ₹8,73,9087.27 to 8.23%

Not estimated because pricing for USD is not fully published: Wise.

Ranked by INR received on USD 5,000. Reference rate: European Central Bank data for 13 November 2026. Fees, conversion markup, GST on fees and FIRA charges as published by each provider, checked 28 October 2026. Ranges appear where a provider publishes a range or does not state its GST rate. Intermediary bank charges are excluded. See the methodology.

For example, on a $2,000 milestone Skydo's USD 19 fee is 0.95% before GST and Razorpay's MoneySaver fee is 1% before GST.2227 On a $500 bug-fix invoice Skydo's fee is 3.8% before GST, and PayPal's 4.40% plus 0.30 USD is 4.46% before conversion.2735

Developers billing small, frequent invoices can lower their percentage cost by billing monthly instead of per task.

What documents follow each payment to a web developer?

Each payment to a web developer should leave a FIRA or e-FIRC, an e-BRC, an EDF and, for a registered developer, an invoice under the LUT.11115323739

DocumentBest forWho issues it and whenSource
FIRA or e-FIRCProof of the foreign creditPayPal weekly; Payoneer per transaction within 24 to 72 hours; Wise per transfer within 3 working days323739
e-BRCGST refund recordsSelf-generated on the DGFT portal from the bank's inward remittance message11
EDFEvery invoice from 1 October 2026Filed with the AD bank within 30 days from the end of the invoice month1
LUTRegistered developersFORM GST RFD-11 for each financial year, deemed accepted on acknowledgement1516

See FIRA for freelancers and EDF for service exporters.

What changes in 2026 for web developers paid abroad?

For web developers, the main 2026 changes are the EDF for every service export from 1 October 2026, the end of SOFTEX for software exports and nine-month realisation.123

  • New regulations: The 2026 Regulations replaced the 2015 export regulations from 1 October 2026.14
  • SOFTEX: RBI Circular No. 20 supersedes the SOFTEX circulars from 1 October 2026, and software exports now use the EDF.3
  • Realisation: Nine months from invoice, twelve months for rupee invoices.2
  • Aggregators: Wise and Skydo became authorised PA-CBs in 2026; Payoneer holds in-principle authorisation from 22 January 2026.634
  • Income tax: The Income-tax Act, 2025 applies from 1 April 2026.20

Ask your bank how unpaid invoices raised before 1 October 2026 are tracked.1

How did we verify this?

We checked this page against the sources below on 31 October 2026. Provider fees, conversion markups and RBI payment aggregator (PA-CB) status were checked on 28 October 2026. Rupee amounts use European Central Bank reference rates for 13 November 2026. Read our methodology or report an error.

  1. [1]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, FEMA 23(R)/2026-RB, amended up to 22 September 2026, regulations 2, 3, 4, 5 and 19
  2. [2]RBI: Notification FEMA 23(R)/(1)/2026-RB dated 22 September 2026, amending regulation 5 (realisation period)
  3. [3]RBI: A.P. (DIR Series) Circular No. 20 dated 16 January 2026 (supersedes the SOFTEX circulars from 1 October 2026)
  4. [4]RBI: Press release on the FEMA (Export and Import of Goods and Services) Regulations, 2026 and Directions, 16 January 2026
  5. [5]RBI: Master Direction on Regulation of Payment Aggregator, 15 September 2025, paragraphs 11(d), 11(h) and 19 (checked 2026-10-31)
  6. [6]RBI: Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, Payment Aggregators list dated 16 October 2026 (checked 2026-10-28)
  7. [7]RBI: Status of Applications received under the Payment and Settlement Systems Act, 2007, as on 16.10.2026 (checked 2026-10-28)
  8. [8]RBI: A.P. (DIR Series) Circular No. 84 dated 29 February 2012, Compilation of R-Returns: Reporting under FETERS (revised purpose codes)
  9. [9]HDFC Bank: Inward Remittance Purpose Codes (bank reproduction of the RBI list, checked 2026-10-28)
  10. [10]DGFT: Purpose Code and SAC Code Mapping, Version 1.0, 10 November 2023 (reproduces RBI receipt code descriptions)
  11. [11]DGFT: eBRC system, self-certification of eBRC from bank inward remittance messages (IRMs), Trade Notice 33/2023-24 dated 10 November 2023
  12. [12]CBIC: IGST Act, 2017, section 2(6) (export of services)
  13. [13]CBIC: IGST Act, 2017, section 16 (zero-rated supply)
  14. [14]CBIC: CGST Rules, 2017, rule 96A (export under bond or Letter of Undertaking), clause (1)(b) as substituted by Notification No. 12/2024-Central Tax, 10 July 2024
  15. [15]GST portal user guide: Furnishing of Letter of Undertaking (FORM GST RFD-11)
  16. [16]CBIC: Circular No. 40/14/2018-GST (LUT deemed accepted on acknowledgement)
  17. [17]Notification No. 10/2017-Integrated Tax (exemption from registration for inter-State suppliers of taxable services), GSTZen reproduction
  18. [18]CBIC: CGST Act, 2017, section 2(6) (aggregate turnover includes exports)
  19. [19]CBIC: Circular No. 159/15/2021-GST (scope of intermediary services)
  20. [20]PIB: Income-tax Act, 2025 comes into force from 1 April 2026
  21. [21]Income Tax Department: Income-tax Act, 2025, section 62 (specified profession, sub-section (4))
  22. [22]Razorpay, Multi-Currency Account for International Bank Transfers (MoneySaver Export Account pricing) (checked 2026-10-28)
  23. [23]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  24. [24]Karbon Business, Karbon for Freelancers (checked 2026-10-28)
  25. [25]Karbon Business, PayPal Alternative comparison page (checked 2026-10-28)
  26. [26]Karbon Forex Terms and Conditions, Interropac Private Limited (checked 2026-10-28)
  27. [27]Skydo FAQs, How much does Skydo charge? (checked 2026-10-28)
  28. [28]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  29. [29]Skydo, Receive international payments as a freelancer in India (product page) (checked 2026-10-28)
  30. [30]Payoneer India, Payoneer Fees (checked 2026-10-28)
  31. [31]Payoneer India, Multi-currency account page and FAQs (checked 2026-10-28)
  32. [32]Payoneer Help Center, Digital FIRA FAQ (checked 2026-10-28)
  33. [33]Payoneer, How to use Payoneer in India (last modified 18 September 2026, checked 2026-10-28)
  34. [34]Payoneer press release, Payoneer receives in-principle authorization as Cross-Border Payment Aggregator in India, 22 January 2026
  35. [35]PayPal India, PayPal Merchant Fees (page last updated 28 March 2024) (checked 2026-10-28)
  36. [36]PayPal India, User Agreement for PayPal Services (last updated 13 January 2025) (checked 2026-10-28)
  37. [37]PayPal India, Foreign Inward Remittance Advise (FIRA) (checked 2026-10-28)
  38. [38]PayPal India Help, How do I transfer funds to my bank account? (checked 2026-10-28)
  39. [39]Wise Help Centre, Receiving payments for Indian businesses (checked 2026-10-28)
  40. [40]Wise India, Fees for getting paid (Wise Business receive pricing) (checked 2026-10-28)
  41. [41]Wise India site, Wise Business pricing, fees at a glance (checked 2026-10-28)
  42. [42]Wise Help Centre, How to verify your Indian business to receive payments (checked 2026-10-28)
  43. [43]Skydo, Terms of Use, last updated 9 April 2026 (checked 2026-10-28)

Frequently asked questions

How do freelance web developers in India receive payments from foreign clients?+

Freelance web developers in India receive foreign payments by bank wire, through local account details from a cross-border payment aggregator, through PayPal, or as marketplace payouts. Every route ends at an Indian AD bank, and from 1 October 2026 the developer files an EDF and realises each invoice within nine months.125

Is a FIRC mandatory for web developers paid through PayPal?+

PayPal now issues a free weekly digital FIRA, downloadable under Reports and then Tax in a business account for the last 12 months. A custom FIRA costs 100 INR plus 18% GST per transaction for up to 20 transactions. Keep the FIRA with your invoices for GST and bank records.37

Does a web developer below ₹20 lakh need to file an LUT?+

A web developer below ₹20 lakh making only inter-State taxable supplies is exempt from GST registration, and an unregistered person does not file an LUT. Export turnover counts toward aggregate turnover, so a developer whose foreign billing crosses the threshold must register and then file the LUT.151718

Can a web developer receive money from a US client into Wise?+

A web developer can receive money from a US client into a Wise Business account, which Wise opens for sole traders with a personal PAN and an INR bank account in their own name. Wise says personal accounts in India cannot receive money, and it pays the rupees to the Indian bank account.3942

Which purpose code should a web developer choose on Payoneer?+

A web developer building websites usually chooses P0802, software consultancy and implementation, on Payoneer. Payoneer applies the code chosen in profile settings to every payment and prints it on each FIRA. Ongoing maintenance contracts may fit P0804, repair and maintenance of computer and software.91032

Is web development a specified profession for the 50% presumptive tax?+

Section 62(4) of the Income-tax Act, 2025 lists information technology among the specified professions, alongside technical consultancy and others. Whether a particular web developer's work counts depends on what is done, so confirm with a chartered accountant before using the 50% presumptive scheme for tax year 2026-27.2021

Do white-label web projects for a foreign agency count as exports?+

White-label web projects billed to a foreign agency can be exports when the five section 2(6) IGST Act conditions hold. CBIC Circular No. 159/15/2021-GST explains that a sub-contractor supplying the main service on its own account is not an intermediary, which matters for developers working under an agency.1219

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

Profession

How should a web development agency in India receive payments from foreign clients?

How Indian web development agencies get paid by foreign clients: white-label and referral traps, purpose codes, EDF, LUT, and income tax by firm, LLP or company.

Profession

How should a software developer in India receive payments from foreign clients?

How Indian software developers get paid by foreign clients: export of services test, purpose codes P0802 and P0807, fee types, GST LUT and section 58 tax.

GST

Do freelancers with foreign clients need GST registration?

An individual freelancer billing foreign clients must register for GST only above ₹20 lakh aggregate turnover. How to count it, and when registering early makes sense.

RBI and FEMA

How should a freelancer get and use a FIRA?

A freelancer's guide to FIRA in 2026: how to get one from your bank, PayPal or a payment aggregator, what to check on it, how to fix errors and when you need it.

Purpose codes

What 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.