What is Mode 1 (Cross-Border Supply)?
International trade rules, mainly under the WTO's General Agreement on Trade in Services (GATS), classify services trade into four "modes". Mode 1 is cross-border supply: the service itself crosses the border, while neither the supplier nor the client moves. Mode 2 is consumption abroad, where the client travels to the supplier's country, as with a foreign patient treated in India. Mode 3 is commercial presence, where the supplier sets up a branch or subsidiary abroad. Mode 4 is the presence of natural persons, where the supplier's staff travel to deliver the service on site.
Most Indian service exports fall in Mode 1. Software built in Pune for a client in Chicago, a UK firm's bookkeeping done from Kolkata, a translation emailed to Madrid: these are all cross-border supply.
Why it matters for exporters
The EDF does not use the term "Mode 1", but the idea maps neatly onto its fields. A Mode 1 export usually means Internet in field 1.4 (mode of delivery), a recipient abroad in Part 2B, and a clear description of the service in field 1.21. Mode 4 work, where your people go abroad, may call for a different delivery choice such as Others, and can raise separate tax questions in the client's country.
Understanding the mode also helps with GST. Export of services requires, among other conditions, that the recipient is outside India and the place of supply is outside India. Mode 1 work for a foreign business client often meets these conditions, though some categories, such as intermediary services, have special rules. Your CA should confirm.
Example
Bodhi Media Pvt Ltd edits videos in Bhopal for a New York agency and uploads the final files to the agency's cloud folder. That is Mode 1 cross-border supply, so Bodhi selects Internet in field 1.4 of its EDF. Next year, Bodhi sends a crew to film an event in Dubai, which is closer to Mode 4.
Common confusion
Mode 1 is a trade-policy term, not a field on the EDF. For on-site work abroad, read services delivered on-site abroad. This is general information, not legal advice.