As an Indian exporter, navigating the complexities of international transactions and compliance can feel like solving a complex puzzle. Today, we'll explore a crucial piece of that puzzle: FIRC

FIRC full form is Foreign Inward Remittance Certificate. It is a document issued by banks as proof of receiving international payments. Over the years, regulations around FIRC have changed significantly, creating confusion and mystery around this important document. Let's clear the air and decode the what, who, and why of FIRC.

FIRC or Foreign Inward Remittance Certificate serves as a proof of foreign money transfer for exporters in India. Until 2016, <a href="https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF">AD (Authorised Dealer) Category I Banks</a> were authorised to issue FIRCs to exporters for receiving payments from foreign sources. This document was essential for exporters to obtain after each cross-border payment. It served not only as proof of payment receipt but also as a crucial document for claiming export-related incentives, such as tax exemptions on foreign currency payments received in India.

As we've covered, the full form of FIRC is Foreign Inward Remittance Certificate and for a long time it served as proof of export income from abroad. However, with changing regulations, the function of FIRC has also changed significantly. Let's take a look:

FIRA is often still referred to by its old name, FIRC. While both documents serve the same purpose, FIRC is technically only issued for returns on&nbsp;Foreign Direct Investment (FDI )or Foreign Institutional Investment (FII). For all other export collections, FIRA/BIRC is what you need.

For clarity, we'll use the term FIRC moving forward, but it refers to FIRA throughout.

Anyone receiving foreign payments needs FIRC.&nbsp; Beyond goods and service exporters engaging in international trade, many individuals and entities may receive international payments without realising it.&nbsp;

Overall, the following typically require a FIRC:

Beyond compliance, here’s why FIRC is crucial for exporters:

FIRCs are issued by AD Category I banks. You can contact your bank to get your FIRC after receiving your foreign payment. <a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">Alternatively, you can also use platforms like Skydo to get your FIRC instantly after every payment.&nbsp;</a>

Who Needs FIRC and Why It’s Important for Exporters?

FIRC (Foreign Inward Remittance Certificate) is essential for anyone receiving foreign payments, including:

Exporters, in particular, rely on FIRC for two key reasons:

FIRC is issued by Authorized Dealer (AD) Category I banks, and businesses can obtain it directly from their bank. However, it is usually a cumbersome process requiring multiple follow-ups and most banks charge around INR 500 to issue each FIRC.&nbsp;In contrast, platforms like Skydo offer a fast, hassle-free solution, providing an instant FIRC for free after every foreign payment—no manual requests, no extra costs.

This is a sample FIRC document. All crucial remittance details have been masked for security purposes. Now let’s break the content of a FIRC down: 

Receiving your export payment directly through your bank can make obtaining an FIRC a lengthy process. You need to submit a request to the bank, and the bank typically takes 7-15 days to provide the FIRC. You may also need to follow up multiple times, and banks often charge at least INR 400 to issue the FIRC, depending on the institution.

<a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">Getting a FIRC</a> might sound like a hassle, but with Skydo, it's a breeze. Our fully automated payment system along with built-in partnerships with banks, ensures effortless compliance with RBI guidelines, without needing any manual intervention.

When you receive an export payment through Skydo, we automatically generate the required FIRC for you at no extra cost. Just log into our user-friendly dashboard, and you'll find your FIRC ready to download, complete with all the details you need. 

In conversations around FIRC, there are a few more terms that get frequently mentioned, one of them being eFIRC. So what exactly is <a href="https://www.skydo.com/blog/efirc-firc-brc-essentials-differences">eFIRC?</a>

What is the difference between eBRC and FIRC?

Generally speaking, e-BRC applies mostly to goods and software exporters (under <a href="https://stpi.in/en/home?no_follow=true/">STPI</a>). If you are one of them, you can use this simple decision tree to understand which documents you will need:

Exporting goods and services is considered Zero-Rated Supply, meaning it is subject to 0% GST. However, to claim a GST refund for the input tax credit, exporters must provide the required documents including FIRC. These documents authenticate that the business is claiming a refund because it exported services and couldn't offset its input tax credit as it would in normal domestic business. Without FIRC, claiming a GST refund may not be possible

As we surge in cross-border transactions, ensuring compliance and safeguarding against illicit activities has become a pressing concern. However, at Skydo, we believe your focus should be on advancing your business, not on grappling with compliance challenges.

With Skydo, enjoy seamless international payments, delivered promptly and without any hidden fees. But that's just the beginning! Every time you receive a cross-border payment, an auto-generated FIRC is readily available for you to download, relieving you of compliance burdens so you can devote your energy to what truly matters: driving your business forward.

FIRC full form is Foreign Inward Remittance Certificate. Learn what FIRC is, its importance for exporters and freelancers, and how to obtain it easily

FIRC: Full form, meaning and RBI guidelines

Dive into the world of FIRC. Explore the full form, importance, and process of obtaining FIRC for your international transactions

Foreign Inward Remittance Certificate (FIRC): Full form, meaning and RBI guidelines

Prashanth

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Prashanth Kumar

Indian exports are booming,&nbsp;<a href="https://utkarsh.com/current-affairs/indian-export-touch-a-historic-high-of-usd-77821-billion-in-2023-24">USD 437 billion</a> in 2023-24. But finding international buyers is still the hard part.

This surge is getting more manufacturers and businesses excited about looking beyond our domestic borders. The government is pushing exports hard; the numbers show it's working. But here's the thing - finding overseas buyers is still an uphill climb, especially for newcomers.

We've been researching this space and talking to actual exporters who've made it work. In this guide, we'll share some lesser-talked-about ways to find buyers for your exports from India, whether you're just starting out or looking to expand your existing business.

Strategies for New Exporters and Businesses to Find Buyers for Goods Exports from India

Finding international buyers is challenging for Indian exporters, especially when starting out. The main issue isn't product quality but building trust and credibility with overseas buyers who don't know you. Most exporters make the mistake of cold emailing random companies or posting on generic B2B platforms, which rarely works. You need smarter, targeted approaches.

Register with FIEO and Your Industry EPC


Start by getting a membership with<a href="https://fieo.org/"> FIEO (Federation of Indian Export Organisations)</a>, which connects you to a network of over 200,000+ Indian exporters. You’ll gain access to buyer-seller meets where vetted global importers come specifically looking for suppliers.

These councils regularly host targeted trade events where you'll meet buyers already interested in your product category, making your outreach focused and meaningful.

Attend introductory events (even the small ones)

Apply for the MAI scheme funding to attend these government-sponsored events where pre-qualified buyers come looking for suppliers:

Research attendee lists beforehand and book meetings in advance. Smaller events often give you more face time with serious buyers.

Optimise your profiles on these platforms where international buyers actively search for Indian suppliers:

Include HS codes, certifications, and export experience in your listings. Respond to inquiries within 6 hours - speed matters to international buyers.

Check website age and government certifications before engaging

Before engaging with any potential buyer, always check how long their website has been active - it tells you how established they are in business. Also, ask for their government certificates and approvals upfront. 

This simple verification step helps you avoid time-wasters and scammers who, unfortunately, target new exporters looking to make their first international sale.

Strategies for Experienced Service SMEs to Find Buyers for Goods Exports from India

Once you've got our export operations up and running, it's time to get smarter and more strategic. The methods that worked when you were starting out need to evolve into data-driven, professional approaches that can scale our business significantly.

Master data-driven targeting with trade databases

Instead of shooting in the dark, let's use actual trade data to identify hot prospects.<a href="https://comtrade.un.org/"> UN Comtrade</a> and<a href="https://www.trademap.org/"> ITC Trade Map</a> are goldmines showing which countries and companies import your product.

&nbsp;For instance, if you export garments, you can see that US textile and apparel imports from India hit <a href="https://www.thehindu.com/business/textile-and-apparel-exporters-suggest-reduction-in-tariff-with-the-us/article69307291.ece#:~:text=In%202024%2C%20the%20U.S.%20T%26A,U.S.%20T%26A%20exports%20to%20India.">$10.8 billion</a> in 2024. But here's the smart part - these databases also reveal which specific companies are importing.

Use Trade Map's company database feature to find actual importer names and contact details. You can filter by country, product category, and import volumes to identify companies that are already buying what you sell, just from other suppliers. This beats cold emailing random companies by miles because you're approaching buyers who have proven demand and budget.

💡Pro tip: Look for an overseas market where India's share is small but growing, indicating untapped potential for positioning yourself as an alternative supplier. For example, <a href="https://shenglufashion.com/2022/04/20/japanese-fashion-companies-continue-to-diversify-apparel-sourcing-base/#:~:text=Japanese%20fashion%20companies%20primarily%20source,and%20Taiwan%20($92%20million).">Japan</a> traditionally sources textiles heavily from China and Vietnam, creating opportunities for Indian exporters to position themselves as alternative suppliers.&nbsp;

Use buying agents and commission-based partnerships

Here's something that actually works based on real exporters' experience: Instead of chasing every buyer yourself, let local buying agents do the heavy lifting. A successful garment exporter mentioned buying offices that take <a href="https://www.reddit.com/r/IndiaBusiness/comments/1kmetmt/comment/ms9mb4n/?utm_source=share&amp;utm_medium=web3x&amp;utm_name=web3xcss&amp;utm_term=1&amp;utm_content=share_button">3-5%</a> commission but handle all the relationship building, saving massive travel and networking costs.

These agents already have established relationships with importers in specific regions. They understand local market preferences, handle negotiations in the buyer's time zone, and can provide market intelligence you'd never get on your own. Look for buying agents through industry directories, trade fairs, or LinkedIn searches for "[your product] buying agent [target country]."

The key is finding agents who specialise in your product category and have a proven track record. Ask for references from other Indian suppliers they represent, and start with non-exclusive agreements until they prove their worth.

Deploy advanced LinkedIn Sales Navigator techniques

Basic LinkedIn isn't enough anymore.<a href="https://business.linkedin.com/sales-solutions/sales-navigator"> LinkedIn Sales Navigator</a> gives you surgical precision in finding procurement managers abroad.&nbsp;

Use Boolean search strings like: "(Procurement OR Sourcing OR "Import Manager") AND (textiles OR apparel) NOT (assistant OR intern)" to find decision-makers in your industry.

The "connections of" filter on Sales Navigator helps you see who your existing clients are connected to in a particular industry. These warm connections are 10x more likely to respond than cold outreach because you have a mutual connection.

Export your leads using tools like<a href="https://evaboot.com/"> Evaboot</a> or<a href="https://prospeo.io/"> Prospeo</a> (which can find email addresses for up to 45% of LinkedIn profiles). Create targeted email sequences through your CRM, mentioning the mutual connection and being specific about why you're reaching out.

Remember geographic targeting, time your messages to land in their inbox during their business hours and use terminology they understand (American English for US buyers, British English for UK buyers).

Partner with complementary businesses for larger opportunities

Instead of competing alone, team up with other Indian exporters to bid for large contracts that no single company can handle. This is especially effective for government tenders or large corporate contracts where buyers need huge volumes or multiple product categories.

Create formal consortia with complementary businesses. Partner with accessory manufacturers, packaging companies, or logistics providers if you export textiles. This lets you offer complete solutions rather than just products, which buyers increasingly prefer.

Document these partnerships properly and present them professionally in your pitches. Large buyers love dealing with consortia because it reduces their vendor management overhead while ensuring consistent supply.

What are The Modern Digital Discovery Channels to find Overseas Clients for your Goods Exports?

Digital discovery has completely changed the game for exporters. You are no longer limited to trade fairs and cold calls - now you can identify, conduct market research, and connect with international buyers from our desks.&nbsp;

But here's the thing: everyone's doing "digital outreach" now, so you need to be smarter about it.

Apart from leveraging the LinkedIn Sales Navigator features, you can also do the following on this platform:&nbsp;

Smart cold outreach that doesn't feel cold

Traditional cold emailing has a 1-2% response rate, but personalized, research-backed outreach can hit 15-20%. The key is making it not feel cold at all.

Social media platforms beyond the obvious

As your digital outreach grows, you need systems to manage it all. Use a CRM like<a href="https://www.zoho.com/crm/"> Zoho</a> (India-made),<a href="https://www.hubspot.com/"> HubSpot</a> (free version available), or<a href="https://www.pipedrive.com/"> Pipedrive</a> to track every interaction.

The key to modern digital discovery is being systematic, not scattered. Pick 2-3 channels, master them completely, then expand. Quality beats quantity every time in international business.

Government Platforms and Schemes to help find overseas clients

The government runs several platforms and schemes to help exporters find overseas buyers, though they're spread across different departments and can be confusing to navigate.

Trade Connect e-Platform: The government's "ChatGPT for exporters"

DGFT's<a href="https://www.trade.gov.in/"> Trade Connect portal</a> launched in 2024, is what Commerce Minister Piyush Goyal calls "ChatGPT for our exporters." This isn't just another government website - it's a single dashboard that connects over 6 lakh IEC holders with 180+ Indian Mission officials and 600+ Export Promotion Council officials.

It's designed for MSMEs with small research budgets. Instead of hunting through 10 different websites for market information, you get everything on one platform. Plus, it connects you directly with commercial officers at Indian embassies who can introduce you to local importers.

Export Promotion Councils: Your industry insiders

Beyond basic registration, EPCs are goldmines for buyer connections that most exporters underuse. Many EPCs maintain buyer directories that they don't actively promote but are available to members. 

For instance, the<a href="https://hepcindia.com/"> Handloom Export Promotion Council (HEPC)</a> or<a href="https://www.eepcindia.org/"> Engineering Export Promotion Council (EEPC)</a> regularly gets inquiries from overseas buyers looking for specific products.

EPCs also facilitate international tenders. A successful handicrafts exporter mentioned how EPCH connected them with a major US retailer through a reverse buyer-seller meet. The retailer had specifically approached EPCH to look for authentic Indian handicraft suppliers, and because this exporter was an engaged member, they got the introduction.

Export Promotion Councils to focus on:

Financial schemes that make you more competitive

The<a href="https://www.commerce.gov.in/international-trade/trade-promotion-programmes-and-schemes/market-access-initiative-mai-scheme/"> Market Access Initiative (MAI) scheme</a> provides funds for international marketing, but most small exporters are unaware of it. MAI provides up to ₹75,000 (₹1,25,000 for Africa and the Americas) for economy airfare reimbursement when you participate in EPC-led international trade fairs.

You can participate in up to 3 MAI events per year. You can do five annual events in different markets for SC/ST/Women exporters and those with exports under ₹50 crores. This means the government is essentially subsidizing your international business development trips.

<a href="https://cleartax.in/s/rodtep-scheme">RoDTEP (Remission of Duties and Taxes on Export Products)</a> is the new export incentive that replaced MEIS. It refunds embedded taxes that you can't claim anywhere else - things like electricity duty, fuel taxes, mandi tax, and coal cess. The refund rates range from 0.01% to 4.3% of your FOB value, issued as transferable electronic scrips.

This makes your pricing more competitive because you're not absorbing these hidden costs. When you quote to international buyers, your prices can be 2-4% lower than competitors who aren't using RoDTEP effectively.

ECGC: Making foreign buyers comfortable with Indian SMEs

<a href="https://www.ecgc.in/">Export Credit Guarantee Corporation (ECGC)</a> provides export credit insurance that covers 80-90% of your export value if overseas buyers default. But here's the strategic angle most exporters miss: ECGC insurance makes foreign buyers more comfortable dealing with you.

When you tell an international buyer that your shipments are covered by ECGC insurance, it signals that you're a serious, government-backed exporter. Large buyers especially prefer suppliers who have export credit insurance because it reduces their supply chain risk.

The cost is typically 0.2-0.8% of your invoice value, but the credibility boost with international buyers often justifies this investment.

Indian Missions abroad: Your extended sales team

Exporters massively underutilise the commercial sections of Indian embassies. These officers maintain databases of local importers, trade promotion programs, and can make warm introductions. Most importantly, they understand the local market dynamics and can tell you which products are in demand.

Pro tip from successful exporters: Before visiting a new country for business, email the Commercial Wing of the Indian Embassy 2-3 weeks in advance. Explain your product, target market, and ask for a brief meeting. Embassy officers are usually happy to help Indian businesses and can provide market intelligence you won't find anywhere else.

Many embassies organise "India Showcases" or business networking events where they invite local importers specifically to meet Indian suppliers. Getting on their radar means you'll be invited to these events.

How to Find Buyers for Export from India: Top Tips 

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India’s export story is a headturner: <a href="https://www.pib.gov.in/PressReleasePage.aspx?PRID=2126119">US$824.9 billion in FY 2024–25</a>, a promising 6% growth over the previous year.&nbsp; So if you are a freelancer or a business owner, this is the right time to take advantage of the momentum and expand your business overseas.

But, behind this impressive headline, there is a costlier reality. Many small Indian business working with overseas clients are giving their profits to hidden international transaction charges.&nbsp;

In this blog post, we'll uncover these hidden charges and provide practical tips to help you keep more of what you earn from foreign currency transactions.

Common International Transaction and Payment Charges

What are the different types of foreign transaction fees? When are they applied? What is the total cost? We answer all of these questions in this part of the blog.

When a client sends you money via a <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT transfer</a>, their bank typically applies an outward SWIFT fee, usually ranging from $15 to $30 per transaction.

In many business cases, this fee is either deducted from the payment amount or passed on to the recipient. Additionally, the payment may pass through multiple intermediary banks, each potentially charging its own fee, making the total cost difficult to predict.

Once the payment reaches your Indian bank, some banks may also levy an inward SWIFT fee, further reducing the final amount credited to your account.

While SWIFT transfers are widely used and secure, it’s important to be aware of these layered charges, as they can impact the net amount you receive.

When you receive international payments, banks usually convert the foreign currency to INR using a rate that includes a <a href="https://www.skydo.com/blog/forex-markup-fee-explained">forex markup</a>, typically around 1% to 3.5% above the mid-market exchange rate (the actual rate you see on platforms like Google or XE).

This markup isn’t shown as a separate fee. Instead, it's baked into the exchange rate you're offered. For instance, if the mid-market rate is ₹83 = $1, your bank might convert it at ₹80.5, meaning you receive less per dollar.

Over larger transfers, this difference can add up. On a $10,000 payment, a 3% markup could result in nearly ₹25,000 less than what you'd get at the mid-market rate.

While this is standard practice across many banks and platforms, it's worth understanding how it affects your final payout, especially if you're receiving payments regularly.

As part of RBI compliance, anyone receiving international payments in India must obtain a <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance">Foreign Inward Remittance Advice (FIRA)</a>, a document that confirms the inward remittance and serves as proof for audits, tax filings, or export benefits. This document is typically issued by the receiving bank in India, often for a fee. For example, HDFC Bank charges ₹200 + 18% GST per FIRA, while <a href="https://www.idbibank.in/pdf/IDBI-Trade-Current-Account.pdf">IDBI Bank</a> may charge up to ₹150 + GST per remittance.

While the fee might seem small, it can add up quickly for businesses or freelancers handling frequent international transactions, making it important to factor in when evaluating total payment costs.

Payment gateways like PayPal, Stripe make it easier for freelancers and businesses to receive payments from international clients. However, these platforms come with a mix of transaction and currency conversion fees that are important to understand.

For example, <a href="https://www.skydo.com/blog/paypal-transaction-fees-india">PayPal charges a 4.4% transaction fee </a>plus a fixed fee (typically $0.30 for USD). Additionally, a 4% currency conversion fee is applied on top of the prevailing exchange rate. This means the effective exchange rate you receive is usually lower than the market rate.

If a client sends $10,000, total deductions may be around $440.30, leaving you with $9,559.70. At an adjusted exchange rate of ₹81.6 per USD, the final amount in INR would be about ₹7,80,071. At the mid-market rate of ₹85/USD, the amount would have been ₹8,50,000, a difference of nearly ₹70,000.

While these platforms offer ease of use and global acceptance, it’s worth comparing fees and exchange rates, especially for larger payments or high volumes.

To understand the impact of these charges, let's see how much you would actually receive from a 10,000 US Dollars payment through different payment methods:

Bank (SWIFT Transfer) Fees: $30 SWIFT fee&nbsp; Forex Markup: ~2% Amount After Fees: $9,970&nbsp; Exchange Rate: ₹83.3 (mid-market ₹85 - 2%)&nbsp; Final Amount: ₹8,30,201

PayPal
 Fees: 4.4% ($440) + $0.30 fixed fee Forex Markup: ~4% Amount After Fees: $9,559.70 Exchange Rate: ₹81.6 (mid-market ₹85 - 4%) Final Amount: ₹7,80,071

Wise Fees: $162 (1.62% conversion fee) Forex Markup: None (mid-market rate used) Amount After Fees: $9,838&nbsp; Exchange Rate: ₹85&nbsp; Final Amount: ₹8,36,230

Skydo Fees: Flat $29 Forex Markup: None (mid-market rate used) Amount After Fees: $9,971&nbsp; Exchange Rate: ₹85 Final Amount: ₹8,47,535

🧾 Assumption: Mid-market USD/INR rate = ₹85

Note: A few additional charges might apply. Like banks and Wise, they charge a fee for issuing an FIRA. The amount differs from one bank to another, and for Wise, the per FIRA charge is $2.5.

Tips to Reduce International Transaction Charges

Now that you know where hidden fees come from, here are some actionable ways to keep more of what you earn:

1. Monitor the Mid-Market Exchange Rate

Always check the live USD/INR rate on Google or XE before confirming a payment. This gives you a reliable benchmark to compare against what your bank or payment platform offers, and helps you spot any built-in markup.

2. Review Your FIRA or Credit Advice

Your Foreign Inward Remittance Advice (FIRA) or bank statement shows the exact rate applied. Compare this with the mid-market rate from the payment date to calculate the forex markup, it's often more than you think.

3. Negotiate with Your Bank (If You're Using One)

If you receive international payments frequently, speak with your bank about lowering forex markups or waiving inward SWIFT fees. Banks may offer better terms to customers bringing consistent foreign inflows, but only if you ask.

4. Use Virtual Accounts to Avoid SWIFT Fees

Platforms like Skydo and Wise offer virtual USD, EUR, and GBP accounts. These accounts allow your clients to pay you using local payment methods (like ACH or SEPA), avoiding SWIFT altogether. The result:

5. Choose Transparent Platforms 
 Avoid platforms that show only the “final amount” without explaining how it was calculated. Services like Wise use the mid-market rate and clearly list fees upfront. Skydo offers flat pricing till USD 10,000 and zero forex markup, so there are no surprises when the funds arrive.

Skydo: Transparent, Seamless International Payments

For Indian freelancers and businesses working with international clients, Skydo offers a cost-effective alternative to traditional banks and payment gateways. With Skydo, you benefit from:

Skydo is a transparent and cost-effective partner for freelancers and business owners with international clients. <a href="https://www.skydo.com/">Sign up now</a> to give it a trial.

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International transaction charges

BACS full form is Bankers’ Automated Clearing System. It is a 54-year-old payment system that’s been the backbone of UK (United Kingdom) banking. Operated by <a href="http://pay.uk">Pay.UK</a>, which is the organization responsible for overseeing the UK’s major payment systems, BACS is trusted by nearly all major UK banks for moving money electronically.

In this blog, we will help you understand what BACS is, how it works, and how you, as an Indian freelancer or business owner, can use BACS to receive payments in India from your UK clients.

BACS, or Bankers' Automated Clearing System, is the electronic payment system that manages everyday money transfers across the UK. It's trusted by individuals and businesses alike to send and receive funds securely between UK bank accounts. To give you a sense of scale, BACS processed<a href="https://www.wearepay.uk/wp-content/uploads/2024/11/Quarterly-Statistical-Report-2024-Q3.pdf"> 1.7 billion payments</a> with a total value of £1,473 billion in only the third quarter of 2024.

How BACS Payments Work (Timing and Process)

BACS payments follow a simple but structured process, so you always know when to expect your money.

A typical BACS transfer takes three working days from start to finish. Here’s how it works:

So, if a BACS payment is made on Monday, it will be credited to a user's account by Wednesday.

According to this timeline, BACS operates only on UK banking days (Monday to Friday). Payments submitted near weekends or public holidays will take longer. The BACS payment system advises users to download the<a href="https://www.bacs.co.uk/media/hvjgrldj/bacs-processing-calendar_2025.pdf"> processing calendar</a> so that they can plan their payments accordingly.

To receive a BACS Direct Credit, a user will need:

No <a href="https://www.skydo.com/blog/iban-number-meaning-full-form">IBAN </a>or <a href="https://www.skydo.com/swift-code-finder">SWIFT code</a> is required for BACS transfers, just these basic UK bank details.

If a company is dealing with BACS Direct Debit payments or setting up payroll, they also need a BACS Service User Number (SUN). The SUN is a unique six-digit number assigned to an organization, allowing it to collect payments through direct debits. But as a freelancer or exporter, you’ll mostly be working with Direct Credits.

Wondering about the costs and limits when using BACS? Here are a few aspects about BACS that you will find interesting:

BACS transfers are one of the cheapest ways to move money in the UK. Sending a payment usually costs between 5p and 50p per transaction as bank charges, depending on your bank or payment provider. That’s cheaper than other systems like CHAPS payments, which mostly cost £20–£30 per transfer. And<a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide"> SWIFT international transfers</a> that cost anywhere from £5 to £25. BACS is designed for everyday business payments, so you keep more of the sender's earnings.

When someone receives a BACS payment, they don’t pay any fees. The sender covers all the costs, meaning if your client sends £1,000, you get the full amount in your account

BACS can handle payments of up to £1 million per transfer. This is much higher compared to<a href="https://www.skydo.com/blog/everything-about-fps-bacs"> Faster Payment Services (FPS)</a>, a popular system for near-instant UK transfers. This means if you’re invoicing your client for big projects, they can easily send that amount through the BACS payment method.

Easily Accept BACS Transfers from UK Clients with Skydo

Your UK client would be more comfortable paying you through BACS. But as an Indian resident, opening a UK bank account will be a long and arduous process. In that case, you’re only left with the option to receive payments through SWIFT, which is an expensive route.&nbsp;

There is an alternative to <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT transfers.</a> It’s called <a href="https://www.skydo.com/blog/virtual-account-numbers">Virtual accounts.</a>

With Skydo, you can create these virtual accounts to accept BACS payments and offer peace of mind to your clients. All you have to do is follow this step-by-step process:

If you ever get stuck, Skydo’s India-based support team is ready to help you with onboarding or any questions along the way.

Sign up with Skydo today and make it easy for your UK-based client to pay you through the BACS payment scheme.

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BACS Full Form, Timing and Charges

When you export from India, regardless of the product or service, the invoice you send matters, not just for your client but also for GST compliance, customs documentation, and foreign exchange tracking.&nbsp;

One field that often confuses many new exporters and freelancers is the HSN code (also known as Harmonised System of Nomenclature). You may wonder:&nbsp;

Will it impact my GST (Goods and Services Tax) refund?

This blog clearly breaks down the concept of HSN code, the importance of HSN, and provides action steps to help you prepare your export invoices correctly and avoid delays.

What Is the Full Form of HSN? (And Why It Exists)

HSN full form is Harmonised System of Nomenclature. It's a globally accepted uniform classification system that identifies and categorises goods for customs and GST. It helps freelancers and exporters receive payments from abroad without unnecessary delays.

HSN came into effect in 1988, developed by the <a href="https://www.wcoomd.org/">World Customs Organization (WCO)</a>, and is now used by over 200 countries, including India.&nbsp;

If you are not familiar with the term HSN and its meaning, let us break it down for you:&nbsp;&nbsp;

For Indian freelancers and exporters, HSN codes are used in GST filings, export invoices, and most importantly, the documentation your client's bank needs to process your payment.&nbsp;

How to Read an HSN Code: Meaning of All 4, 6, and 8 Digits

In India, you need to use 8-digit HSN codes, where the first two digits represent the relevant HSN chapter, the next two are the heading, the following two are the subheading, and the last two digits are the customs tariffs.

Let us break down the digits of the HSN code 22021010&nbsp; for you:&nbsp;

The best part is that the HSN number speaks the same language everywhere, whether you're sending website designs to a startup in Berlin or software code to a company in New York. 

Your invoice looks professional, your payment gets processed without question in a systematic manner, and you avoid those dreaded "clarification needed" emails that delay your money.

HSN vs SAC Code – Which One Applies to You?

This is a common confusion, especially among freelancers and SaaS companies. Here's the simple breakdown of HSN code list:

But you'll use HSN codes instead if you're shipping physical products - handmade jewellery, organic spices, or textile products.

💡Quick tip: All SAC (Service Accounting Code) codes start with "99"; that's your first clue you're dealing with services. The eight digits of the correct HSN code are mandatory for exports and imports, while SAC codes are 6 digits and mandatory for service providers with a turnover above ₹5 crore.&nbsp;

When Are You Required to Use HSN or SAC in Export Invoices?

You must mention the HSN or SAC code in your export invoice if:

The GST portal doesn't auto-fill this stuff for you, and missing it means your refund application sits in "pending clarification" limbo.

<a href="https://www.gstn.org.in/assets/mainDashboard/Pdf/GST%20e-invoice%20System%20-%20FAQs.pdf">For smaller freelancers</a> (under ₹1.5 Cr turnover): Small taxpayers with an annual turnover below Rs. 1.5 crore are exempt from mentioning the HSN code in their invoices and returns by the tax authorities. But if you're exporting services and want GST refunds, you'll likely need these codes anyway for zero-rated supply claims.

<a href="https://eztax.in/gst/gst-rate-hsn-sac-finder">The penalty reality</a>: A penalty of Rs 50000 (Rs 25000 under CGST and Rs 25000 under SGST) would be levied for not mentioning HSN/SAC or wrongly mentioning it in GST Returns and Invoices used for taxation purposes.

Missing or using an incorrect HSN/SAC code can cause rejections at customs, hold up your client's payment processing, and trigger those dreaded "document discrepancy" emails from banks.