SAP and ERP consultancies exporting from India file one EDF a month covering every invoice to foreign clients — implementation milestones, support retainers and time-and-material bills alike. Because ERP work counts as software, you can file with your AD bank or with STPI, and the deadline is 30 days from the end of the invoice month. The tricky parts are mixed revenue streams and consultants who spend weeks on client sites abroad.
Key takeaways
- Choose field 1.1 "Software" for ERP implementation and support; software exporters outside an SEZ can file with the AD bank or STPI.
- Purpose code P0802 (software consultancy/implementation) fits most ERP receipts; custom development may sit under P0807. The bank confirms.
- SAC 998313 (IT consulting and support) is a common fit; custom code may be 998314 and hosting 998315. Confirm with your CA.
- Licence resale and pass-through costs need separate thought — don't lump them into service rows without advice.
Three revenue streams, one EDF
Most ERP consultancies earn from a mix of three streams. Each one behaves differently on the EDF, but all of them land on the same monthly form.
| Revenue stream | Typical billing | Likely SAC (confirm) | Likely purpose code (bank confirms) | EDF note |
|---|---|---|---|---|
| Implementation projects | Milestones: blueprint, build, test, go-live | 998313 or 998314 | P0802 | Each milestone invoice in its own month |
| Application management support (AMS) | Monthly fixed fee or ticket bands | 998313 | P0802 | Recurring row each month |
| Staff augmentation / T&M | Hours or days × rate, monthly | 998313 | P0802 | Keep timesheets with invoice |
| Custom add-ons built offshore | Fixed fee or T&M | 998314 | P0807 | Description should say "development" |
| Hosting of ERP environments | Monthly | 998315 | Ask bank | Separate line if billed separately |
Implementation milestones
A typical S/4HANA or Dynamics rollout bills at phase gates. A blueprint invoice in January and a build invoice in April go on the January and April EDFs respectively. Each starts its own 9-month realisation clock. If go-live slips and the client withholds a milestone payment, that invoice's clock keeps running.
AMS retainers
Support contracts are the easiest stream to declare: same client, same description, new invoice monthly. If the contract has a base fee plus overage for extra tickets, show both on the invoice. The EDF row records the invoice total.
Staff time
Time-and-material billing for consultants working remotely or on site is common. The invoice amount varies month to month; keep the approved timesheet with it as backup.
Software, the AD bank and STPI
Under the FEMA (Export and Import of Goods and Services) Regulations, 2026, SOFTEX is gone. Software exports are declared on the same single EDF used for other services. Outside an SEZ, a software exporter can file with its AD bank or with STPI. AD banks are now specified authorities on par with STPI, and STPI certification is no longer mandatory.
Many ERP consultancies find the AD bank simpler because that's where the money lands and where EDPMS closure happens. If you're registered with STPI for other reasons, ask both how they'd like you to file and pick one route consistently. SEZ units file with the SEZ Development Commissioner.
One filing nuance: the alternative of submitting the EDF on or before the date payment is received applies to services other than software. As an ERP consultancy declaring software, plan around the standard deadline.
Consultants on site abroad
ERP projects often need functional consultants in the client's office for workshops, cutover and hypercare. When an invoice is mainly for on-site work, the delivery mode may be "Others" rather than "Internet", and the description should say so: "On-site functional consulting, Hamburg, 3–21 March". Mixed invoices — some offshore, some on site — can stay as one row with a clear description and the delivery mode that reflects most of the work, or be split into separate invoices if your CA prefers.
On-site work can also raise GST place-of-supply and income-tax questions in the client's country. Those are outside the EDF, but worth a conversation with your CA before a long deployment.
Licences and pass-through costs
Some partners resell software licences or rebill travel. These are not the same as your consulting services:
- Licence resale may be classified differently from services and could even raise questions about whether you are acting as an intermediary under GST. Take advice before invoicing.
- Travel and expense reimbursements should be shown clearly on the invoice. Whether they belong in the EDF row is a separate question to settle with your CA and bank; whatever you decide, keep them visible and treat them the same way every month.
Worked example: a Noida SAP partner's month
Ardent Ledger Consulting Pvt Ltd, an SAP partner in Noida, raises these invoices in December 2026:
| Invoice | Client | Country | Stream | Amount | Approx. INR |
|---|---|---|---|---|---|
| ALC/26-27/301 | Food manufacturer | Netherlands | Build-phase milestone | EUR 42,000 | ₹38.6 lakh |
| ALC/26-27/302 | Retail chain | Australia | AMS December | AUD 9,500 | ₹5.3 lakh |
| ALC/26-27/303 | Logistics firm | USA | T&M, 3 consultants | USD 21,600 | ₹18.1 lakh |
| ALC/26-27/304 | Logistics firm | USA | Custom add-on built in Noida | USD 6,000 | ₹5.0 lakh |
Ardent files one December EDF with four rows, type Software, through its AD bank. It's due 30 January 2027. All invoices are under LUT with the export wording, generated from the same template in our export invoice generator.
When payments arrive, the Dutch and US T&M invoices (both above ₹10 lakh) are matched with FIRAs and instructions. The AMS and add-on invoices go into a quarterly declaration of realisation. Ardent checks that the add-on's FIRA doesn't carry a consultancy code if the bank agreed P0807 fits — the distinction is explained in our note on P0802 vs P0807.
Realisation and slow go-lives
ERP projects slip. If a milestone is invoiced but the client withholds payment until go-live, the 9-month realisation period still runs from the invoice date. Options include invoicing milestones only when acceptance is near, agreeing interim payments, and — when a delay is genuine — asking your AD bank for an extension with reasons before the period ends.
This is general information, not legal or tax advice.
Frequently asked questions
Should ERP consultancies tick Services or Software in field 1.1?
ERP implementation, configuration and support are generally treated as software services, so Software is the usual choice. If part of your business is non-software consulting, such as pure process advisory, discuss with your bank how to classify those invoices.
Can I still file through STPI?
Yes, if you prefer. Software exporters outside an SEZ can file with the AD bank or STPI. STPI certification is no longer mandatory, so many firms now file with their AD bank.
How do I show a T&M invoice with three consultants on the EDF?
The invoice is one row in Part 2B. Put the total invoice amount and NRV in the row and a description such as "SAP SD/MM consulting, 3 consultants, November". Keep timesheets with the invoice in case the bank asks.
Do AMS invoices under ₹10 lakh need FIRAs sent to the bank?
For invoices up to ₹10 lakh, the bank may close the EDPMS entry on your declaration that the money has been realised. You should still keep each FIRA on file for GST and audit purposes.
What if the client pays in a different currency from the invoice?
Note it in the remarks column and tell your bank when matching. The amount realised in rupees may differ from your original estimate, which affects your records but not the requirement to realise the invoice value.
Bottom line
Put every ERP stream — milestones, AMS, T&M and add-ons — on one monthly EDF, typed as Software, with codes agreed once with your CA and bank. Build the month's form in the free EDF form generator.
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.