P0802 is the RBI purpose code for software consultancy and implementation, while P0807 is the code for off-site software exports. In plain terms, P0802 suits advisory and implementation work, and P0807 suits software built in India and delivered to a client abroad — but because many contracts mix both, confirm the code with your bank before the money lands.
Key takeaways
- P0802 covers software consultancy and implementation; P0807 covers off-site software exports.
- The code is attached to the inward remittance and appears on your FIRA or FIRC.
- Choose based on what the invoice is actually for, not on which code "sounds bigger".
- If a payment arrives under the wrong code, ask your bank to correct it in writing, promptly.
What a purpose code does
Every inward foreign remittance into India is tagged with a purpose code. It tells the bank, and through it the RBI, what the money is for. Your bank shows the code on the FIRA or FIRC, and the code travels with the credit into the systems that match payments to exports.
For a software business, the purpose code is one of three classification labels you deal with. The others are the SAC code on your GST invoice (and in Part 2B of the EDF) and the description of services. They are separate systems, but they should tell the same story. If your invoice says "custom software development", your SAC is 998314, and your remittance comes in under a consultancy code, someone reviewing the file later may ask why.
The two codes side by side
| Point | P0802 | P0807 |
|---|---|---|
| Official label | Software consultancy / implementation | Off-site software exports |
| Typical work | Advising on systems, implementation, configuration, rollout support | Building software in India and delivering it to an overseas client |
| Where work happens | Often a mix of remote advice and client-facing activity | Off-site, i.e. in India, delivered online |
| Natural SAC pairing (confirm with CA) | 998313 IT consulting and support | 998314 IT design and development |
| Common example | ERP rollout advisory for a UK retailer | A mobile app built for a US startup |
The SAC pairing is a starting point, not a rule. Your CA should confirm the SAC, and your bank should confirm the purpose code.
How to decide for a given invoice
Ask what the client is paying for in the main.
They are paying for your judgement and your hands on their systems. Requirements workshops, solution design, configuring a platform the client already owns, migration planning, go-live support. That reads as consultancy and implementation, which points to P0802.
They are paying for a product or code you build. You write software in your Indian office and ship it — a web application, an API, a module. That reads as an off-site software export, which points to P0807.
They are paying for both. Many engagements start with discovery and end with a build. If the contract has separate phases and separate invoices, the code can follow each invoice. If one invoice covers everything, go with the dominant element and keep a note in your file explaining why.
Two worked examples
Lattice Forge Software Pvt Ltd, Kochi, builds a booking platform for a Canadian travel company. The team in Kochi writes all the code; the client receives builds online. In January 2027 Lattice Forge invoices CAD 22,000. The work is software built off-site and delivered abroad, so P0807 is the natural fit. The SAC on the invoice is likely 998314, subject to their CA's view.
Brightwell ERP Advisory LLP, Pune, helps a German manufacturer implement an ERP system it has already licensed. Brightwell's consultants run design workshops, configure modules and train users remotely. Its February 2027 invoice of EUR 14,500 is for consultancy and implementation, so P0802 fits better. The SAC is likely 998313.
Both invoices go on each firm's monthly EDF — January invoices by 2 March 2027 and February invoices by 30 March 2027. The purpose code doesn't appear in Part 2B, but the description of services and SAC code do, which is why consistency matters.
Telling your client which code to use
The remitter's bank abroad doesn't use Indian purpose codes, so the code is normally assigned on the Indian side. How your bank captures it — a form, a portal field, a call from the branch — depends on the bank. A few habits help:
- Put a clear service description on every invoice, such as "Off-site software development services — Sprint 14". The bank may use it.
- Tell your bank your usual purpose code when you set up export receipts, so it isn't guessing.
- Check every FIRA as soon as you get it. Our purpose code finder helps you sanity-check the code for a given service.
When the code comes in wrong
Mistakes happen. A payment for a software build might be credited under P0802 or under an unrelated code. Don't ignore it.
- Compare the FIRA against the invoice and contract.
- Write to your branch asking for a correction, quoting the remittance reference, date and amount, and explaining the service. Our purpose code correction letter is a quick way to draft it.
- Keep the bank's response with the FIRA in your records.
Earlier is better. A wrong code can complicate matching the payment to your EDF entry and can raise questions in a GST refund claim.
This is general information, not legal or tax advice. Purpose codes are assigned by your bank, and it has the final word.
Frequently asked questions
Can one invoice be split between P0802 and P0807?
A single remittance usually carries one purpose code. If your work genuinely has two distinct parts, consider raising separate invoices for each so the payments can be coded separately. Otherwise, use the code that reflects the main nature of the invoice and record your reasoning.
Does the purpose code appear on the EDF?
The EDF's Part 2B asks for the description of services and the SAC code, not the purpose code. The purpose code appears on the FIRA or FIRC. Because both documents describe the same export, keep them consistent.
Is P0807 better for GST refunds than P0802?
Neither code is "better". What matters is that the code correctly describes the service and is consistent with your invoice and records. A mismatched code is what creates friction, whichever one it is.
What about SaaS subscriptions?
Subscription and usage-based software sits between the categories, and banks may treat it differently. Discuss it with your bank and CA and pick one approach you can apply consistently. Our complete guide to purpose codes covers other software and IT codes.
Who decides the final code — me or the bank?
You describe the service; the bank assigns and reports the code. If you think the bank has got it wrong, you can ask it to correct the code with supporting documents. Keep that correspondence on file.
Bottom line
P0802 fits consultancy and implementation; P0807 fits software you build in India and deliver abroad. Match the code to the invoice, check every FIRA and fix errors early. Use the free purpose code finder to check your choice before you talk to the bank.
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.