Nasscom flags RBI draft export-import rules with MeitY, calls for simplified compliance for IT sector

The meeting was held on August 1

Amid concerns that the Reserve Bank of India's draft Foreign Exchange Management (Export and Import of Goods and Services) Regulations 2025 will increase compliance burdens for service exporters, software exporters and industry body Nasscom met with the IT ministry over the matter.

At a meeting held on August 1, Nasscom flagged that the draft proposes a new Export Declaration Form (EDF) for services, including software, in place of the existing SOFTEX form.

The present SOFTEX form is overseen by the Software Technology Parks of India (STPI), an autonomous body under the IT ministry.

Industry pointed out that SOFTEX was created to suit the digital nature of software exports, with no physical shipping and recurring billing. However, the industry fears the new EDF would only add extra paperwork.

During the meeting, industry pointed out that exporters already deal with multiple systems such as the GST portal, the Export Data Processing and Monitoring System (EDPMS) and authorised dealer banks.

A new filing requirement could risk creating overlaps, delays in realising revenues and increase compliance costs, they argued.

Nasscom’s key recommendation to the government was to use the GST system as a single reporting window for export certifications, albeit with some modifications for capturing export-specific data .

Other suggestions included extending the submission window for invoices to 30 days (instead of the draft’s 21-day deadline), scrapping the Rs 1 lakh cap on consolidated invoices. NASSCOM also recommended creating flexible thresholds for advance payments on large contracts.

The RBI’s draft regulations, brought in April 2025, are aimed at modernising trade reporting and aim to bring both goods and services under a common framework.

The rules will take effect nine months after they are formally notified. Until then, consultations with stakeholders like MeitY are expected to continue.

India’s IT and services exports generate tens of billions of dollars annually, remain a critical source of foreign exchange.

India's information technology exports increased from $199.5 billion to $224.4 billion in FY 2-24-2025. This reflect an increase of 12.48 per cent in fiscal 2024-25 from 2.83 pr cent growth in the previous fiscal.

With this in mind, the industry is pushing for a regime that reduces duplication and makes compliance smoother rather than more complicated.

The publication has reached out to IT ministry for comments on the matter and the article will be updated when a response is received.