RBI purpose code · Money received (inward)

P0108: Goods sold under merchanting / export leg receipt

Short answer. P0108 is the RBI purpose code for money received from abroad: goods sold under merchanting / export leg receipt. Both legs of a merchanting trade go through the same AD bank, and from 1 October 2026 at most six months apart.

Direction
Money received (inward)
RBI head
01 · Goods – exports and imports
Bank application
None: the bank issues a FIRA
Income tax
Your income
GST
Outside GST
Reporting
MTT · same AD bank
In FxLayer
Merchanting trade: links to the merchant trade and its proformas.

When to use P0108

Use P0108 for money received from abroad: goods sold under merchanting / export leg receipt. It sits under RBI head 01, goods – exports and imports.

The same purpose in the other direction is S0108: Goods acquired under merchanting / payment against the import leg of merchanting trade (money paid abroad).

Form A1 or Form A2

Neither. Form A1 and Form A2 are applications to send money out of India. For money coming in, the bank issues a Foreign Inward Remittance Advice (FIRA), or a payment platform an e-FIRA, naming the purpose code.

Income tax

Money received for goods or services you export is your business or professional income, taxed in your own return with the rest of your income. Nothing is withheld in India on money coming in.

GST

Goods shipped from one country to another without entering India are neither a supply of goods nor of services (Schedule III of the CGST Act, paragraph 7), so neither leg carries GST.

Reporting and closure

The payment to the supplier goes under S0108 and the receipt from the buyer under P0108, through the same AD bank, so the bank can pair the two legs. For trades from 1 October 2026 the two legs must be at most six months apart; trades begun earlier keep the older four-month outlay and nine-month completion.

Questions

Neither. Form A1 and Form A2 are applications to send money out of India. For money coming in, the bank issues a Foreign Inward Remittance Advice (FIRA), or a payment platform an e-FIRA, naming the purpose code.
Money received for goods or services you export is your business or professional income, taxed in your own return with the rest of your income. Nothing is withheld in India on money coming in.
Goods shipped from one country to another without entering India are neither a supply of goods nor of services (Schedule III of the CGST Act, paragraph 7), so neither leg carries GST.

Guides

General information on RBI purpose codes and the FEMA, income-tax and GST rules as they stood on 14 October 2026. It is not legal or tax advice: confirm the position for your payment with your AD bank or your chartered accountant before acting.