IEC (Import Export Code) for Freelancers Receiving Foreign Payments

Is IEC mandatory for services exports? What DGFT actually says, and when your bank will insist on it.

Under the Foreign Trade Policy, IEC is mandatory for import/export of goods and services — with a specific exemption for services covered under Section 7 of the IGST Act when foreign exchange is realised.

In practice, most Indian banks (and payment platforms like Wise, PayPal Business) will ask for an IEC before releasing large foreign remittances, even for pure services.

IEC is a lifetime code but must be electronically updated every year on the DGFT portal between April and June — failing which the IEC is deactivated automatically.

For freelancers, obtaining an IEC also unlocks LUT filing under GST (zero-rated exports), avoiding the working-capital drag of paying IGST and claiming a refund later.