A Foreign Inward Remittance Certificate (FIRC) serves as the definitive legal proof that you have executed an "Export of Service" and brought foreign currency into India. Without it, tax authorities can treat your foreign revenue as local un-disclosed business sales and impose standard local GST liabilities.

Freelance services delivered abroad qualify as an export of service, which is designated as a Zero-Rated Supply (0% GST). However, to legally bypass charging the 18% GST rate, you must file a Letter of Undertaking (LUT) on the official GST portal at the start of each financial year.

Once a foreign payment is received, you must contact your bank's international trade department or use their portal to request an FIRC. You will need to provide the transaction reference number and state the purpose of remittance (e.g., P0802 for software services).

Yes. Most modern banks and payment processors (such as Wise, PayPal, or Payoneer) issue a Foreign Inward Remittance Advice (FIRA) or Electronic FIRC (e-FIRC), which is accepted by GST and income tax authorities as proof of foreign currency receipt.

Purpose code P0802 indicates "Software consultancy/implementation services". Selecting the correct purpose code during transaction processing is vital to classify your inward remittance as an export of service under FEMA.