Which purpose code should a SaaS company use for foreign subscription revenue?
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Short answer
SaaS revenue is usually reported under P0802, "Software consultancy/implementation (other than those covered in SOFTEX form)", or P0807, "Off-site Software Exports".1 DGFT maps hosting (SAC 998315) and software downloads (SAC 998434) to both codes.2 DGFT maps software licensing (SAC 997331) to P0901 and P0902.2 DGFT's "Services > IT" category accepts P0802, P0803, P0807 and P0103.3
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| SaaS companies and solo developers selling subscriptions to foreign customers1 | RBI Circular No. 84 purpose code list; DGFT Purpose Code and SAC Code Mapping and eBRC rules; FEMA (Export and Import of Goods and Services) Regulations, 20261235 | EDF within 30 days from the end of the month of invoicing5 | Not applicable | 28 October 2026 |
A SaaS company in Bengaluru selling a project management tool to teams in the US, an HR tech start-up in Pune billing European customers annually, and a solo developer in Kochi selling a browser extension by subscription all face the same question: which purpose code goes on the foreign receipts?1 RBI's 2012 list has no SaaS code, so the choice is between software, licensing and data processing codes.
What is the purpose code for SaaS revenue?
The purpose code for SaaS revenue is usually P0802 or P0807, the software codes in group P08, "Telecommunication, Computer & Information Services", because Annex I to A.P. (DIR Series) Circular No. 84 dated 29 February 2012 has no code that mentions SaaS, subscriptions or cloud services.12
- Hosted service: hosting and IT infrastructure provisioning (SAC 998315) maps to P0802 and P0807.2
- Downloadable software: software downloads (SAC 998434) map to P0802 and P0807.2
- Licence: licensing services for the right to use computer software and databases (SAC 997331) map to P0901 and P0902.2
Which purpose code applies to each SaaS revenue model?
Five codes are realistic candidates for SaaS receipts, based on their RBI descriptions and the SAC (Services Accounting Code) entries the Directorate General of Foreign Trade (DGFT) maps to them.12
| Code | Official description | Relevant SAC mapped by DGFT | Best for |
|---|---|---|---|
| P0802 | Software consultancy/implementation (other than those covered in SOFTEX form) | 998313 IT consulting and support; 998314 IT design and development; 998315 hosting and IT infrastructure provisioning; 998319 other IT services; 998434 software downloads | Hosted SaaS and implementation |
| P0807 | Off-site Software Exports | Same SAC codes as P0802 | Hosted SaaS, depending on the bank's practice |
| P0803 | Data base, data processing charges | 998415 data transmission services | Data processing products |
| P0902 | Receipts for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films), patents, copyrights, trademarks, industrial processes, franchises etc. | 997331 licensing services for the right to use computer software and databases | On-premise or white-label licences |
| P0901 | Franchises services | 997331, and other licensing SAC codes | Franchise-style licensing |
How do you choose a purpose code for SaaS revenue?
You choose a purpose code for SaaS revenue from the contract and the SAC on your invoice.2
- Hosted service, customer logs in: most SaaS terms sell access to a hosted service, which maps through SAC 998315 to P0802 and P0807.2
- Downloadable software sold by subscription: software downloads (SAC 998434) also map to P0802 and P0807.2
- Licence to use your software or database: for example, an on-premise licence or a white-label right maps through SAC 997331 to P0901 and P0902.2
- Data processing as the product: if customers pay you mainly to process their data, P0803 "Data base, data processing charges" may fit.1
- Ask the bank between P0802 and P0807: the RBI descriptions still refer to the SOFTEX form, and from 1 October 2026 the Export Declaration Form (EDF) under the 2026 Regulations covers software exports.15 See P0802 vs P0807.
Note: A SaaS contract that bundles implementation, support and a licence can reasonably point to more than one code. The choice depends on the contract terms, so confirm it with your bank and use a matching SAC on your GST invoices.
Which DGFT rules apply to SaaS e-BRCs?
DGFT's eBRC rules limit which codes can be used for IT services e-BRCs and require the invoice SAC to match.3
| Rule | What DGFT says | Best for |
|---|---|---|
| IT category | For "Services > IT", only P0802, P0803, P0807 and P0103 are applicable3 | SaaS firms on software codes |
| Licence receipts | P0902 is outside the IT list, so licence receipts are certified under a different services category3 | Licensors |
| SAC match | An exporter can only attach invoices whose SAC matches the description of the services3 | Every SaaS exporter |
| Bulk and API | DGFT allows bulk e-BRC generation by file upload and generation through an API4 | Companies with many subscription receipts |
| Platform receipts | Exporters paid through platforms such as PayPal or Wise can ask the bank to report the IRM and then self-generate the e-BRC4 | SaaS firms paid through platforms |
Which EDF rule applies to SaaS exporters?
From 1 October 2026, every exporter of services gives an Export Declaration Form (EDF) to the specified authority, usually the authorised dealer (AD) bank, under the FEMA (Export and Import of Goods and Services) Regulations, 2026.5
- Who: every exporter of services, including SaaS companies.5
- Where: the specified authority, usually the AD bank.5
- When: within 30 days from the end of the month of invoicing.5
See EDF for service exporters for how this applies to subscription billing.
What happens if SaaS receipts carry the wrong purpose code?
If SaaS receipts carry the wrong purpose code, ask the bank that credited the payments to amend the code.4
- Amendment: DGFT's FAQs say exporters must contact the bank to request purpose code changes.4
- Card and platform receipts: DGFT says banks report foreign remittance IRMs on an account-credited basis, so start with the bank or provider that credited the money in India.4
- Steps: see how to correct a purpose code after payment.
What are the common mistakes with purpose codes for SaaS revenue?
The common mistakes with purpose codes for SaaS revenue come from treating every subscription as a licence, or every licence as a service.12
- Licence code on hosted SaaS: hosted access maps to P0802 and P0807.2
- Software code on a pure licence: a licence maps to P0901 and P0902.2
- Ignoring the IT category: only four codes qualify for "Services > IT" e-BRCs.3
- Treating the purpose code as the GST test: GST is decided by the IGST Act. SaaS sold to foreign businesses and to foreign consumers can be treated differently, and online information and database access or retrieval (OIDAR) services have their own rules. See GST on SaaS sold to foreign customers and OIDAR services under GST.
How did we verify this?
We checked this page against the sources below on 30 October 2026. Read our methodology or report an error.
- [1]RBI: Annex I to A.P. (DIR Series) Circular No. 84 dated 29 February 2012, Purpose Codes for Reporting under FETERS, Part B (receipt purposes)
- [2]DGFT: Purpose Code and SAC Code Mapping, Version 1.0, 10 November 2023
- [3]DGFT: eBRC generation rules, General Guidelines for Generating eBRC (last updated 26 March 2024)
- [4]DGFT: FAQs (Self-Generation of eBRC), Version 1.0, March 2024, questions 25, 42, 82, 86 and 87
- [5]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, amended up to 22 September 2026, regulations 3 and 4
Frequently asked questions
Is there a SaaS-specific purpose code in RBI's list?+
RBI's receipt purpose code list has no SaaS-specific code.1 Most SaaS receipts fall under P0802 or P0807, the software codes in group P08, because DGFT maps hosting and software download SAC codes to both.2 A pure licence fee may fit P0902, and data processing may fit P0803. Confirm the code with your bank.
Can a SaaS company generate e-BRCs under DGFT's IT category?+
A SaaS company can generate e-BRCs under DGFT's "Services > IT" category if its receipts carry an IT code. DGFT's rules say that category accepts P0802, P0803, P0807 and P0103.3 Receipts coded P0902 for licences fall outside that list and would be certified under a different services category.
Does a SaaS company need an e-BRC for each small card payment?+
An e-BRC is generated against the bank's inward remittance messages, and DGFT offers bulk generation by file upload on the portal and generation through an API.4 A SaaS company with many small subscription receipts can use those routes instead of generating each e-BRC by hand on the DGFT portal.
Is purpose code P0902 right for SaaS subscriptions?+
P0902 covers receipts for use, through licensing arrangements, of produced originals, copyrights and similar rights, and DGFT maps licensing of the right to use computer software (SAC 997331) to P0902.12 P0902 fits if your contract is a licence. Most hosted SaaS terms sell access to a service, which maps to P0802 and P0807.
Do SaaS exporters file an Export Declaration Form?+
From 1 October 2026, every exporter of services gives an Export Declaration Form (EDF) to the specified authority, usually the authorised dealer bank, under the FEMA (Export and Import of Goods and Services) Regulations, 2026.5 See EDF for service exporters for how the EDF applies to subscription billing with many invoices.
How do SaaS companies paid through PayPal or Wise get an e-BRC?+
DGFT's FAQs say exporters paid through platforms such as PayPal or Wise can approach the bank to report the inward remittance message (IRM) and then self-generate the e-BRC on the DGFT portal.4 Start with the bank or provider that credited the money in India, and keep the purpose code consistent with the invoice SAC.
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
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.
Purpose codesWhat is the difference between purpose codes P0802 and P0807?
P0802 is software consultancy or implementation outside SOFTEX; P0807 is off-site software exports. How DGFT treats each and what changed when SOFTEX ended.
GSTDo you charge GST on SaaS subscriptions sold to foreign customers?
When Indian SaaS sold to customers abroad is a zero-rated export, how place of supply works for business and consumer buyers, and the LUT, invoice and FEMA steps.
ProfessionHow should a SaaS company in India receive payments from foreign customers?
How Indian SaaS companies handle foreign subscriptions: export test and OIDAR, purpose codes after SOFTEX, card collection, EDF, income tax and transfer pricing.
GSTWhat are OIDAR services under GST and who pays the tax?
What online information and database access or retrieval (OIDAR) services are under IGST section 2(17), how section 14 taxes them, and what it means for Indian exporters.