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PayPal, Wise or Payoneer: What GST and the RBI's Software Purpose Code Mean for Web Development Agencies

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Editorial team, serviceexportguide.com
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Short answer

Website builds for foreign clients are usually reported under purpose code P0802, software consultancy/implementation.1 A GST-registered agency invoices exports without IGST under an LUT.23 From 1 October 2026 every invoice needs an Export Declaration Form (EDF) and nine-month realisation.45 PayPal charges 4.40% plus a fixed fee per international sale.6 Payoneer prints the purpose code on each FIRA.7

Applies toRules involvedPlatforms comparedLast verified
Web development agencies in India billing foreign clientsIGST Act sections 2(6) and 16, LUT238; FEMA 2026 Regulations: EDF and nine-month realisation45; RBI purpose codes P0802 and P080719Razorpay, Karbon Business, Skydo, Payoneer, PayPal, Wise6101112131428 October 2026 (rules and published fees)415

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.

Web development agencies in India build websites, web apps and e-commerce stores for clients abroad, often on milestone or retainer billing. Two rules decide how each payment is treated: the GST export rules, which make qualifying supplies zero-rated, and the RBI purpose code the bank records for the receipt.29 PayPal, Wise and Payoneer handle the purpose code and proof of receipt differently, which matters as much as their fees.72425

The full persona guide is international payments for web development agencies; this page focuses on the comparison and the code. Confirm your structure with a chartered accountant (CA).

How do PayPal, Wise and Payoneer compare for web development agencies in India?

PayPal suits web agency clients who pay by card or PayPal balance, while Wise and Payoneer give agencies local account details for bank transfers, and each prices conversion to INR differently.131426 The table adds the three providers with the lowest estimated cost on a USD 2,000 receipt from published fees, ordered by that estimate, cheapest first, with Wise (no published INR conversion percentage) after.10111227

PlatformBest forFeeFX markupSettlementFIRARBI PA-CB statusSource
RazorpayLocal transfers from the US, UK and eurozone181% per MoneySaver bank transfer plus GST, with a flat fee of ₹1,000 below ₹1,00,000; international cards up to 3% plus GST1028Razorpay says 0% FX markup on MoneySaver bank transfers; card conversion markup not published1029T+1 for push bank transfers (ACH, FPS, SEPA, SWIFT); around T+5 business days for ACH debit Flash Links1830Foreign Inward Remittance Statement (FIRS) emailed within 24 hours after settlement for bank transfers1831Razorpay Payments Private Limited is listed as PA-CB for inward and outward transactions15Razorpay pricing and docs; RBI list10151828293031
Karbon BusinessUS bank transfers and marketplace payouts321% transaction fee, listed on Karbon's PayPal alternative page110% (freelancer page); 0.5% to 1.0% (PayPal alternative page)3211Karbon says 24 to 48 hours32FIRA for every transaction from an unnamed banking partner; cost not published32Not on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB1533Karbon pages and terms; RBI list11153233
SkydoLocal bank transfers from major markets34USD 19 plus GST up to USD 2,000; USD 29 plus GST from USD 2,001 to USD 10,000; 0.3% plus GST above USD 10,00012350% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)3637Skydo's terms say T+1 to T+3 business days, depending on currency and corridor37Free FIRA on every payment received, Skydo says3638Skydo Technologies Private Limited is listed as PA-CB-I and O, authorised 8 January 202615Skydo FAQs and terms; RBI list121535363738
PayoneerMarketplace payouts such as Amazon or Upwork39Payment request by card 2.90% + $0.49; ACH bank debit (US only) 1%; receiving-account fees are shown in your account131% to 4% of the amount when converted to INR on withdrawal, depending on region and volume13Within 24 hours (multi-currency account page); within 48 hours (pricing page)1340Free digital FIRA for each transaction from Payoneer's partner AD bank, within 24 to 72 hours7In-principle PA-CB authorisation on 22 January 2026; RBI lists the application as under process as of 16 October 2026; Payoneer also lists an RBI OPGSP registration414243Payoneer pricing, help and press pages; RBI status list71340414243
PayPalClients paying by card or PayPal balance264.40% plus a fixed fee (0.30 USD for USD) per international commercial transaction63.0% or 4.00% above the base exchange rate, depending on the conversion type6Up to 5 business days to reach the Indian bank account44Free weekly digital FIRA from February 2026; custom FIRA at 100 INR plus 18% GST per transaction22Listed as an existing PA-CB with in-principle authorisation granted, as on 16 October 202642PayPal fee, help and FIRA pages; RBI status list6224244
WiseBank transfers to local account details14Equivalent of 2 USD per transfer to the INR account (help article); free e-FIRC (receive pricing page); 6.11 USD per USD wire or Swift receipt in its business fee table; 18% GST on fees144527Mid-market rate plus a conversion fee; no percentage published for INR27Wise says INR reaches the Indian bank within 1 to 2 days14e-FIRC for each transfer, emailed within 3 working days14Wise Payments India Private Limited is listed as PA-CB-I, authorised 12 March 202615Wise help and pricing pages; RBI list14152745

Purpose code handling also differs: PayPal sets one default code at account setup, Payoneer applies the code in your profile to every payment, and Razorpay applies one code to all international transactions on the account.71724

Which RBI and GST rules apply to web development agencies?

The rules that apply to a web development agency paid from abroad are the IGST Act export and zero-rating provisions, the LUT and invoice rules for registered agencies, and the 2026 FEMA export regulations.2348

RuleBest for (who it applies to)Plain meaningSource
IGST Act section 2(6)Every agency billing a client located outside IndiaAll five export conditions must hold, including payment in convertible foreign exchange8CBIC8
IGST Act section 13(2)Remote builds delivered onlinePlace of supply is the client's location, unless a special rule in sections 13(3) to 13(13) applies46CBIC46
IGST Act section 16 and LUTGST-registered agenciesExports are zero-rated; an LUT in FORM GST RFD-11 lets the agency invoice without IGST for the financial year23CBIC, GST portal23
CGST rule 96A(1)(b)Agencies with slow-paying clientsIGST with interest is due if payment is not received within one year or the FEMA period, whichever is later47CBIC47
GST registration exemptionSmall agencies making only inter-State suppliesRegistration is not required up to ₹20 lakh aggregate turnover (₹10 lakh in special category States)2148Notification 10/2017-IT, CGST Act2148
EDF and realisation, 2026 RegulationsEvery agency exporting from 1 October 2026File the EDF and collect payment within nine months of the invoice45RBI45

An LUT is filed by a registered person, so an unregistered agency cannot use it.3 See how to file an LUT.

Which purpose code applies to web development agencies?

Website and web app builds are usually reported under P0802 or P0807, with maintenance retainers under P0804.149 The receipt code list comes from RBI A.P. (DIR Series) Circular No. 84 of 29 February 2012.9

CodeBest for (transaction type)Official RBI descriptionSource
P0802Website builds, redesigns, integrations and custom web appsSoftware consultancy/implementation (other than those covered in SOFTEX form)HDFC, DGFT149
P0807Software exports your bank classifies as off-siteOff-site Software ExportsHDFC, DGFT149
P0804Maintenance and support retainers billed separatelyRepair and maintenance of computer and softwareHDFC, DGFT149
P0803Data migration or data processing workData base, data processing chargesHDFC, DGFT149
P1007Paid ad management, if the agency also offers itAdvertising, trade fair serviceHDFC, DGFT149

DGFT maps IT design and development services (SAC 998314) to both P0802 and P0807.49 Whether banks prefer P0802 or P0807 for off-site work now that SOFTEX has ended is unclear, so read P0802 or P0807 after SOFTEX and ask your bank.16

Which option is cheapest at $500, $2,000 and $5,000?

The cheapest option for a web agency depends on invoice size and on whether the client pays by bank transfer or card, because flat per-payment fees fall as a share of larger invoices.61012 The table below works out INR received at today's rate from each provider's published fees.

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, a $5,000 build milestone paid by bank transfer costs about 0.68% with Skydo's USD 29 plus GST, and 1.00 to 1.18% with Razorpay's 1% MoneySaver fee plus GST.1012 Payoneer's conversion to INR costs 1% to 4% of the amount depending on region and volume.13 PayPal's 4.40% fee plus a 3.0% or 4.00% conversion fee comes to about 7.27 to 8.23% at that size.6

What documents follow each payment?

Each foreign payment to a web agency leaves a FIRA or e-FIRC from the provider or bank, and the agency adds an EDF, a self-certified e-BRC and an LUT-endorsed export invoice.342350

DocumentBest forWhat it doesSource
FIRA, e-FIRC or FIRSMatching milestone payments to invoicesProof of receipt; Razorpay issues a FIRS, Wise an e-FIRC and Payoneer and PayPal a digital FIRA7142231Provider pages7142231
e-BRCGST refunds and export recordsSelf-certified on DGFT from the bank's inward remittance messages23DGFT23
EDFEvery agency exporting from 1 October 2026Declares each month's software exports to the AD bank within 30 days from the end of the invoice month4RBI4
LUTGST-registered agenciesAllows zero-rated invoicing without IGST, deemed accepted on ARN generation351GST portal, CBIC351
Export invoiceEvery registered agencyRule 46 endorsement for supply under LUT, plus the recipient's name, address and country50CBIC50

Software exporters file the EDF within 30 days from the end of the invoice month; the option to file on or before the payment date applies only to non-software services.4 See EDF for service exporters.

What changes in 2026 for web development agencies?

The 2026 changes for web development agencies are the new FEMA export regulations with the EDF, the end of SOFTEX, the nine-month realisation period, the GST intermediary change and the new Income-tax Act.45165253

  • EDF replaces SOFTEX: From 1 October 2026 the EDF under the 2026 Regulations covers software exports, and Circular No. 20 supersedes the SOFTEX circulars from that date.416
  • Realisation period: Nine months from the invoice date, or twelve months if invoiced or settled in rupees.5
  • Extensions and write-offs: The AD bank can extend the period, and can allow a reduction in export value on declaration alone for invoices up to ₹10 lakh.4
  • Intermediary rule: Section 13(8)(b) of the IGST Act was omitted with effect from 30 March 2026, which matters to agencies earning referral fees from foreign software vendors.52 See intermediary services under GST.
  • GST Council recommendation: The 57th GST Council meeting on 8 October 2026 recommended omitting condition (v) of section 2(6); it is not in force as of 28 October 2026.54
  • Income tax: The Income-tax Act, 2025 applies from 1 April 2026.53

The export invoice generator and EDF generator help put these steps into each billing cycle.

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]HDFC Bank: Inward Remittance Purpose Codes (bank reproduction of the RBI list, checked 2026-10-28)
  2. [2]CBIC: IGST Act, 2017, section 16 (zero-rated supply)
  3. [3]GST portal: User guide, Furnishing of Letter of Undertaking (FORM GST RFD-11)
  4. [4]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB, amended up to 22 September 2026 (regulations 3, 4, 5, 6, 7, 13 and 19)
  5. [5]RBI: Notification No. FEMA 23(R)/(1)/2026-RB dated 22 September 2026, amending regulation 5 (realisation period)
  6. [6]PayPal India, PayPal Merchant Fees (page last updated 28 March 2024) (checked 2026-10-28)
  7. [7]Payoneer Help Center, Digital FIRA FAQ (checked 2026-10-28)
  8. [8]CBIC: IGST Act, 2017, section 2 (definition of export of services, clause 6)
  9. [9]RBI: A.P. (DIR Series) Circular No. 84 dated 29 February 2012, Compilation of R-Returns: Reporting under FETERS (purpose codes)
  10. [10]Razorpay, Multi-Currency Account for International Bank Transfers (MoneySaver Export Account pricing) (checked 2026-10-28)
  11. [11]Karbon Business, PayPal Alternative comparison page (checked 2026-10-28)
  12. [12]Skydo FAQs, How much does Skydo charge? (checked 2026-10-28)
  13. [13]Payoneer India, Payoneer Fees (checked 2026-10-28)
  14. [14]Wise Help Centre, Receiving payments for Indian businesses (checked 2026-10-28)
  15. [15]RBI: Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, Payment Aggregators, list as on 16 October 2026 (checked 2026-10-28)
  16. [16]RBI: A.P. (DIR Series) Circular No. 20 dated 16 January 2026 (supersedes the earlier SOFTEX circulars from 1 October 2026)
  17. [17]Razorpay Docs, About Purpose Codes (checked 2026-10-28)
  18. [18]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  19. [19]CBIC: Circular No. 161/17/2021-GST (establishments of distinct persons)
  20. [20]GST Council: E-invoicing for taxpayers with aggregate turnover above ₹5 crore from 1 August 2023 (Notification No. 10/2023-Central Tax)
  21. [21]CBIC: CGST Act, 2017, section 2(6) (aggregate turnover includes exports)
  22. [22]PayPal India, Foreign Inward Remittance Advise (FIRA) (checked 2026-10-28)
  23. [23]DGFT: eBRC system, self-certification of eBRC from bank inward remittance messages (IRMs), Trade Notice 33/2023-24 dated 10 November 2023 (checked 2026-10-28)
  24. [24]PayPal India Help, What is the Purpose Code? (checked 2026-10-28)
  25. [25]Wise India blog, Verifying Wise Business account as a sole trader in India, dated 28 August 2026 (checked 2026-10-28)
  26. [26]PayPal India, User Agreement for PayPal Services (last updated 13 January 2025) (checked 2026-10-28)
  27. [27]Wise India, Fees for getting paid (Wise Business receive pricing) (checked 2026-10-28)
  28. [28]Razorpay, Pricing, International Payments and International Bank Transfers tabs (checked 2026-10-28)
  29. [29]Razorpay Docs, Currency Conversion (checked 2026-10-28)
  30. [30]Razorpay Docs, Flash Links (ACH Debit) (checked 2026-10-28)
  31. [31]Razorpay Docs, FIRS Automated Process (checked 2026-10-28)
  32. [32]Karbon Business, Karbon for Freelancers (checked 2026-10-28)
  33. [33]Karbon Forex Terms and Conditions, Interropac Private Limited (checked 2026-10-28)
  34. [34]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  35. [35]Skydo, home page fee table (checked 2026-10-28)
  36. [36]Skydo, Receive international payments as a freelancer in India (product page) (checked 2026-10-28)
  37. [37]Skydo, Terms of Use, last updated 9 April 2026 (checked 2026-10-28)
  38. [38]Skydo FAQs, What is accepted for GST filings and banks between FIRA and FIRC? (checked 2026-10-28)
  39. [39]Payoneer, How to use Payoneer in India (last modified 18 September 2026, checked 2026-10-28)
  40. [40]Payoneer India, Multi-currency account page and FAQs (checked 2026-10-28)
  41. [41]Payoneer press release, Payoneer receives in-principle authorization as Cross-Border Payment Aggregator in India, 22 January 2026
  42. [42]RBI: Status of Applications received under the Payment and Settlement Systems Act, 2007, as on 16 October 2026 (checked 2026-10-28)
  43. [43]Payoneer India, Payoneer's multi-jurisdictional licenses (checked 2026-10-28)
  44. [44]PayPal India Help, How do I transfer funds to my bank account? (checked 2026-10-28)
  45. [45]Wise India site, Wise Business pricing, fees at a glance (checked 2026-10-28)
  46. [46]CBIC: IGST Act, 2017, section 13, sub-sections (2) and (4) (place of supply where supplier or recipient is outside India; immovable property) (checked 2026-10-31)
  47. [47]CBIC: CGST Rules, 2017, rule 96A (export under bond or Letter of Undertaking), as substituted by Notification No. 12/2024-Central Tax, 10 July 2024
  48. [48]Notification No. 10/2017-Integrated Tax (exemption from registration for inter-State supplies of taxable services up to ₹20 lakh), GSTZen reproduction
  49. [49]DGFT: Purpose Code and SAC Code Mapping, Version 1.0, 10 November 2023
  50. [50]CBIC: CGST Rules, 2017, rule 46 (tax invoice, export endorsement)
  51. [51]CBIC: Circular No. 40/14/2018-GST (LUT deemed accepted on generation of ARN)
  52. [52]Finance Act, 2026, section 157 (omission of section 13(8)(b) of the IGST Act from 30 March 2026), Gazette of India
  53. [53]PIB: Income-tax Act, 2025 comes into force from 1 April 2026
  54. [54]GST Council: Press release, 57th meeting of the GST Council, 8 October 2026

Frequently asked questions

Is P0802 or P0807 the right purpose code for a website build in 2026?+

P0802 covers software consultancy and implementation, and P0807 covers off-site software exports. RBI Circular No. 20 superseded the SOFTEX circulars from 1 October 2026 and no change to either description was found, so a web agency should ask its AD bank which code it now expects and use it consistently.116

Do web agencies charge GST to a client in the US or UK?+

A web agency does not charge GST on a supply that meets all five export conditions in section 2(6) of the IGST Act, because exports are zero-rated under section 16. A registered agency files an LUT in FORM GST RFD-11 and invoices without IGST; without an LUT it must follow the IGST-paid refund route.238

Can a web agency set a different purpose code on Razorpay for each client?+

Razorpay applies the purpose code chosen during international activation to all international transactions on the account. Its MoneySaver list includes P0802 but does not include P0807, so an agency whose bank prefers P0807 should check this before choosing Razorpay for software receipts.1718

Is a website built for our own foreign parent company an export?+

CBIC Circular 161/17/2021-GST says an Indian subsidiary supplying services to its foreign parent is not merely an establishment of a distinct person, so the supply can be an export if the other conditions hold. A branch billing its own head office abroad does not meet that condition.819

Does a web agency need e-invoicing for export invoices?+

E-invoicing applies when aggregate turnover exceeds ₹5 crore, from 1 August 2023, and export turnover counts towards aggregate turnover.2021 A web agency above that threshold should check how its e-invoicing system handles zero-rated export invoices raised under an LUT.

How does a web agency prove a PayPal payment for GST refunds?+

PayPal issues a free weekly digital FIRA from February 2026, downloadable under Reports and then Tax in a business account. For refund claims, the agency also self-certifies an e-BRC on the DGFT portal from its bank's inward remittance messages.2223

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.

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Which purpose code should a software developer or IT company use for export receipts?

Purpose codes for software and IT service exports from India: P0802, P0807, P0803, P0804, P0801 and P0902, how DGFT's IT e-BRC rules use them, and how to choose.

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