IT consulting firms that bill foreign clients file one EDF a month with their AD bank, listing every export invoice raised that month as a separate row. For most consulting work delivered remotely, the delivery mode is "Internet", the SAC code is usually in the 9983 IT group, and the purpose code on receipts is often P0802, though each needs confirming against what you actually do. The tricky parts are not the form but the billing patterns consultancies use: time-and-material, retainers and milestone fees.
Key takeaways
- If you deliver IT consulting from India to foreign clients, plan on filing a monthly EDF with your AD bank (or STPI, if you export software and prefer it).
- Each invoice is one row in Part 2B, whether it is a monthly T&M bill, a retainer or a milestone.
- Likely SAC codes: 998313 (IT consulting and support) or 998314 (IT design and development). Confirm with your CA.
- Likely purpose codes: P0802 (software consultancy/implementation); P0807 if your work is off-site software export. Confirm with your bank.
- Realise each invoice within 9 months of its date, and keep LUT wording on your GST invoices.
Is your consulting "software" or "other services"?
The EDF's field 1.1 asks for the type of export: Goods, Services or Software. This choice matters a little more than it looks.
- Software exporters outside an SEZ may submit the EDF to the AD bank or to STPI. SOFTEX no longer exists; software is now declared on the same single EDF.
- Services other than software go to the AD bank, and have an extra timing option: the EDF may be submitted on or before the date payment is received, instead of within 30 days of month-end.
A firm doing pure advisory work, such as cloud architecture reviews, security assessments or IT strategy, may sit closer to "Services". A firm building and implementing systems for clients may be closer to "Software". Many consultancies do both. Pick the classification that fits each month's work, discuss borderline cases with your CA and bank, and be consistent.
Codes that usually fit
| Type of engagement | SAC code (confirm with CA) | Purpose code (confirm with bank) |
|---|---|---|
| IT strategy, architecture, advisory | 998313 IT consulting & support | P0802 |
| System implementation, integration | 998313 or 998314 | P0802 |
| Custom development delivered offshore | 998314 IT design & development | P0807 or P0802 |
| Managed hosting, infrastructure | 998315 hosting & IT infrastructure | Confirm with bank |
| Other IT services | 998319 | Confirm with bank |
The purpose code P0802 vs P0807 explainer goes deeper. Whatever you choose, the SAC on the GST invoice, the description in Part 2B and the purpose code on the FIRA should all tell the same story.
Billing patterns and how each goes on the EDF
Time and material
You bill hours or days worked in the month. Simple: one invoice per client per month, one row per invoice. If you raise separate invoices per project for the same client, each gets its own row.
Monthly retainers
A fixed fee for support or advisory hours. If billed in advance (for example, a December retainer invoiced on 1 December), the invoice date decides the EDF month. A December-dated invoice belongs on the December EDF, due 30 January 2027, even though the work is for December.
Milestone fees
Large implementation projects are often billed on milestones. Each milestone invoice is a row in the month it is raised. Advances received before the invoice should be noted in remarks, and Part 4 lets you say value "has been received".
Expense reimbursements
Travel or software licences re-billed to the client raise their own questions. Our article on reimbursements and the EDF covers them.
Worked example: a month at Corvex Consulting
Corvex Consulting LLP, Gurugram, has three clients:
- A US bank: T&M billing for a cloud migration.
- A UK insurer: a monthly support retainer.
- A Singapore start-up: a fixed-price implementation with four milestones.
In October 2026 Corvex raised:
| Invoice | Client | Type | Currency | Amount | SAC |
|---|---|---|---|---|---|
| CVX/26/101 | US bank | T&M, September hours | USD | 22,400 | 998313 |
| CVX/26/102 | UK insurer | October retainer | GBP | 5,000 | 998313 |
| CVX/26/103 | Singapore start-up | Milestone 2 | SGD | 18,000 | 998314 |
Note that CVX/26/101 is for September's hours but dated 3 October. It goes on the October EDF, because the invoice date decides the month.
Corvex files one EDF for October, with three rows across three countries and three currencies. At illustrative book rates (USD ₹84, GBP ₹110, SGD ₹63), the total is ₹18,81,600 + ₹5,50,000 + ₹11,34,000 = ₹35,65,600. Due by 30 November 2026.
Two of the three invoices are above ₹10 lakh, so their EDPMS entries will need invoice, FIRA and matching instructions when paid. The UK retainer is under ₹10 lakh and can be closed on a realisation declaration if the bank agrees.
Realisation and the 9-month window
Consulting clients sometimes take 60 or 90 days to pay, especially large enterprises with vendor portals. That is fine within the 9-month window for services (12 months if invoiced in rupees). Problems arise with disputed invoices, partly accepted milestones or clients in procurement freezes.
Track each invoice's 9-month date. If a client is stuck, request an extension from your AD bank, with reasons, before the date passes. Our realisation extension request letter has a format.
GST, LUT and the EDF
Most IT consulting exports qualify as zero-rated supplies if the Section 2(6) IGST conditions are met, including payment in convertible foreign exchange. Export under LUT, with the invoice carrying "Supply meant for export under LUT without payment of IGST". Watch the intermediary rules if you are arranging services from third parties for a foreign client; that can change the place of supply.
The EDF does not change your GST or income-tax obligations. It is a FEMA declaration to your bank. This is general information, not legal or tax advice.
Frequently asked questions
Should an IT consulting firm tick Services or Software on the EDF?
It depends on what you deliver. Advisory and support work may fit Services; building and implementing software may fit Software. If you do both, discuss classification with your CA and bank and stay consistent month to month.
Which SAC code do IT consultants usually use?
998313 (IT consulting and support) is common, and 998314 (IT design and development) fits development-heavy work. Confirm the code with your CA and use the same one on your invoice and in Part 2B.
Is P0802 the right purpose code for IT consulting receipts?
P0802 covers software consultancy and implementation and is commonly used. P0807 covers off-site software exports. Ask your bank to confirm the code that fits each client's work.
Does a T&M invoice for last month's hours go on last month's EDF?
No. The EDF month is decided by the invoice date. An invoice dated in October goes on the October EDF, even if the hours were worked in September.
Can we file the EDF with STPI instead of the bank?
If you export software from outside an SEZ, you may file with the AD bank or STPI. For services other than software, the EDF goes to the AD bank. SEZ units file with the Development Commissioner.
Bottom line
For IT consultancies, the EDF is a monthly roll-up of your invoices with codes that match your work. Build it with the free EDF form generator and check codes with the SAC code finder.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.