How does the purpose code connect to GST on export of services?

Indian service exporters deal with two classification systems that were built separately. RBI's purpose codes classify foreign exchange receipts for balance of payments reporting.⁸ GST's Services Accounting Codes (SAC) classify the service on your tax invoice. The Directorate General of Foreign Trade (DGFT) joins the two in its e-BRC system, and a mismatch shows up there.¹²

For GST on exports itself, see GST on export of services.

What is the link between the purpose code and GST on export of services?

The link between the purpose code and GST on export of services is the e-BRC: the bank's purpose code flows into DGFT's e-BRC system, which pairs it with your invoice SAC, and the e-BRC or FIRC is the payment evidence a GST refund claim needs.¹³⁴

• GST law: GST law does not refer to RBI purpose codes; rule 89(2)(c) of the CGST Rules asks for "a statement containing the number and date of invoices and the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates, as the case may be".⁴
• Why proof is needed: CBIC's Circular No. 125/44/2019-GST explains that realisation of consideration in convertible foreign exchange, or in Indian rupees where RBI permits, is one of the conditions for export of services, which is why proof of realisation is required for services but not for goods.⁵
• DGFT's role: DGFT maps purpose codes to SAC codes and lets you attach only invoices whose SAC matches the service.²³

A purpose code that does not match your invoice SAC can therefore hold up the e-BRC you need for GST.³⁴

Who does the purpose code and SAC link apply to?

The purpose code and SAC link applies to every service exporter who generates an e-BRC or uses one as payment evidence for a GST refund.³⁴

How does the purpose code reach the e-BRC?

The purpose code reaches the e-BRC through the bank's inward remittance message (IRM).¹

1. Your bank receives the foreign payment: the bank records a purpose code for it, as it does for every foreign exchange transaction reported to RBI.⁸
2. The bank sends an IRM to DGFT: DGFT's eBRC page says the system is based on IRMs transmitted directly by banks, and exporters self-certify e-BRCs from them.¹
3. You link the IRM to your invoice: DGFT's rules say that for service exports you can only view and attach invoices whose SAC codes match the description of the services.³
4. You choose the SAC that corresponds to the purpose code: DGFT's FAQs say exporters must choose the SAC code that corresponds to the purpose code.⁶
5. You use the e-BRC or the FIRC as payment evidence: the refund claim under rule 89(2)(c) needs it.⁴

To keep the codes aligned from the start, pick the invoice SAC first, look up the purpose codes DGFT maps to it, tell your bank or platform that code before the payment arrives, and check every credit advice or FIRA.²⁶

What does DGFT's purpose code to SAC mapping show?

DGFT's purpose code to SAC mapping is a table of SAC codes and the purpose codes each one can be paired with.²

• For example, a digital marketing agency invoicing SAC 998361 would ask for P1007.²
• For example, a bookkeeping firm invoicing SAC 998222 would ask for P1005.²
• For example, an online tutor invoicing SAC 999293 would ask for P1107.²

DGFT's FAQs say the full SAC list is on the GST portal and the purpose code mapping is on the DGFT website, and invite feedback on the concordance to ebrc-dgft@gov.in.⁶

What happens if the purpose code and the invoice SAC do not match?

If the purpose code and the invoice SAC do not appear together in DGFT's mapping, the invoice will not be offered for that IRM, so the e-BRC cannot be generated as filed.³

• IT category limits: for "Services > IT", only P0802, P0803, P0807 and P0103 are applicable.³ A developer whose receipt carries P1006 cannot certify it as IT.
• Non-IT services under SOFTEX: DGFT's FAQs say an e-BRC cannot be generated for non-IT services exports with SOFTEX; the exporter must amend the IRM's purpose code to the relevant services code first.⁶
• Non-export codes: DGFT says it will implement checks to prevent e-BRC generation for non-export purpose codes.⁶ Personal codes such as P1301 (family maintenance) and P1302 (personal gifts and donations) describe transfers.⁸

The fix in each case is a purpose code amendment through the bank: DGFT's FAQs say exporters must contact the bank to request changes.⁶ See how to correct a purpose code after payment.

Which rules link the purpose code to GST evidence?

Five official documents set the link between the purpose code and GST evidence for service exports.¹²⁴⁵⁷

Since 1 May 2025, DGFT's e-BRC format for services exports has a mandatory "Mode of Export of Services" field based on the four GATS modes.⁷ Mode 1, cross-border supply, covers services supplied from India remotely without people moving, such as IT services and remote consulting, which describes most freelancers and agencies.⁷

What are the common mistakes with purpose codes and GST on export of services?

The common mistakes with purpose codes and GST on export of services leave the bank's code and the invoice SAC describing different services.²³

• Choosing the code after the payment: tell the bank the matching code before the money arrives, so no amendment is needed later.⁶
• Ignoring multi-code SACs: some SAC codes map to several purpose codes, so confirm with the bank which one it uses.²
• Using a consulting code for IT work: a developer paid under P1006 falls outside "Services > IT".³
• Treating the purpose code as the GST test: the place of supply and GST treatment come from GST law, as explained in GST on export of services.

Note: DGFT's mapping is Version 1.0 dated 10 November 2023 and some SAC codes map to several purpose codes.² Where the right pairing depends on your contract, confirm with your bank and your GST practitioner. This page is not tax advice.