If you earn money from clients outside India, the rules of the game changed on 1 October 2026. The Reserve Bank of India (RBI) replaced the old export rulebook with a new one under the Foreign Exchange Management Act, 1999 (FEMA), and introduced a single, simple form — the EDF, or Export Declaration Form — for reporting your exports. Here is everything you need to know in plain language.
Whenever you earn from outside India, the government wants to know three things: what you are exporting, how much it is worth, and whether the money actually came back to India. These rules come under FEMA, 1999, which is administered by the RBI. In simple words, FEMA is the rulebook for "money crossing India's borders."
In January 2026, the RBI replaced the old export rules with a brand-new set that officially took effect on 1 October 2026. The centrepiece of the new rulebook is a single declaration called the EDF (Export Declaration Form).
Before worrying about forms, ask yourself: did I actually sell something to a specific person outside India? Under FEMA, "export of service" means the provision of services from India to a person outside India. Notice the key word — a person. You need an identifiable customer outside India who received your service and paid you for it.
The easy examples (these are exports):
The tricky example (this is not a simple export): you post videos on YouTube and earn ad money, or post reels on Instagram and earn platform money. There is no customer — YouTube is a platform, not your client. You did not send an invoice to anyone, and the money is a share of advertising revenue based on views.
The EDF is a declaration you give to your bank saying: "I sold services worth this much to this foreign client, and I promise to bring that money back into India." It is the paperwork that connects your sale to the money coming back. It is not a tax return and is not related to GST — it is a foreign-exchange declaration under FEMA.
Earlier, software exporters used a separate form called SOFTEX. From 1 October 2026, SOFTEX is gone, and software is also reported through the EDF. Now there is one form for everything: goods, services, and software.
Any exporter of services, irrespective of the value of the export. This includes freelancers (designers, writers, developers, consultants), IT and software companies, marketing and design agencies, professionals providing services abroad — and even creators and YouTubers, but only if what they do genuinely qualifies as an export. For example, if a foreign brand pays you directly for sponsored content, that is an export and needs an EDF.
| Your situation | Where to file |
|---|---|
| Non-software services (consulting, design, marketing, etc.) | Your bank (called the "Authorised Dealer" or AD) |
| Software exports | Your bank or STPI |
| If you're in an SEZ (Special Economic Zone) | SEZ Development Commissioner |
In short, for a normal businessman or proprietor outside an SEZ, you file with your own bank.
The general rule is to file within 30 days from the end of the month in which you raised the invoice. There is also good news on timing:
The form has two parts:
Importantly, you do not upload the EDF to any RBI website yourself. Your bank does the system entry; you just give the form to the bank.
To export services smoothly as a proprietor, get these in place first:
Once you invoice a client, you must bring the full export value back to India within a specified period. From 1 October 2026, the timelines are:
There is no automatic penalty per form, but the consequences are real. Without an EDF, your bank cannot reconcile your money, because there is no file in the system to match your incoming payment — and the bank may hold up crediting your foreign money. Your invoice may show as "unrealised", and money not reconciled within 9 months makes you look like a non-compliant exporter.
Breaking FEMA rules can attract a penalty of up to 3 times the amount involved (or ₹2 lakh where the amount is not quantifiable), plus daily penalties for continuing. Repeated non-compliance can also get you placed on the Caution List, after which you cannot export without advance payment or a letter of credit. The simple advice is to just file it on time — it is one form a month, and it protects you.
If you physically export goods from India, the EDF compliance is integrated with the Customs process. For exports through an EDI port, the EDF is deemed to have been submitted as part of the Shipping Bill, so there is no separate EDF to submit to the bank. For exports through a non-EDI port, the EDF is furnished separately and the Authorised Dealer enters the details in EDPMS within five working days of receiving it. The export value must be declared in full, and proceeds must ordinarily be realised and repatriated within 9 months from the date of shipment (12 months where invoiced or settled in INR).
From 1 October 2026, exporting services means one new habit: every month, file one EDF with your bank. Keep clean invoices, chase your payments within 9 months, and keep the EDF separate from your GST in your mind. Do this and you stay completely compliant, with no surprises.
This article is for general informational purposes only and does not constitute professional or legal advice. For specific guidance, please consult a qualified Chartered Accountant.
