New Rules for Mode of Export of Services in BRC: Starting May 01, 2025

DGFT issued a rule through which exporters will need to complete the Mode of Export of Services field in their Electronic Bank Realization Certificate (eBRC) starting May 01, 2025. From May 01, 2025, exporters must fill in a new field called Mode of Export of Services in BRC.

What’s This All About?

The Indian service exports, including software and tourism, generate substantial foreign revenue. To track these deals better, the DGFT is adding the Mode of Export of Services in BRC to the eBRC form. The modification will reveal foreign service delivery, which enables better trade statistics for the government while guaranteeing India meets international requirements.

What’s an eBRC?

Consolidated Electronic BRCs function as digital proofs that demonstrate payment completion to exporters for their exported products or services. The DGFT’s online system allows exporters to add payment information by linking to their bank accounts or uploading training data. The eBRC functions as a mandatory document for Indian exporters to comply with the Foreign Exchange Management Act (FEMA), 1999 trade regulations.

What Does the Mode of Export of Services in BRC Mean?

The Mode of Export of Services in BRC explains how a service is delivered from India to a foreign customer. It’s based on four categories from GATS, which cover different ways services cross borders. Exporters will need to pick the right mode when filling out the eBRC, helping the government understand the type of trade service.

Classification of "Modes of Export of Services"

The new eBRC field corresponds to the four modes of services trade defined by GATS. Below is a detailed breakdown of each mode, along with examples to illustrate their application:

Mode	Definition	Example Services
Mode 1: Cross-Border Supply	Services supplied (from India) remotely across borders without movement of individuals.	IT services, remote consulting, and telemedicine
Mode 2: Consumption Abroad	Consumption Abroad Consumer travels to the service provider’s country (i.e., to India)	Tourism, medical treatment in India, foreign students
Mode 3: Commercial Presence	A service supplier (from India) establishes a commercial entity abroad.	Indian bank branches overseas, IT company subsidiaries
Mode 4: Presence of Natural Persons	An individual (from India) travels abroad temporarily to provide services	Engineers, doctors, and IT professionals on assignment

Why This Change Matters

Adding the mode of export of services in BRC brings several benefits:

The establishment of four service category classifications promotes better trade statistics for governmental trend identification.
The world trade rules enable India to present its GATS-standards-based records, which increases its standing among global trading nations.
Government policies benefit from improved data, which enables them to implement effective export support systems.
Simpler paperwork appears as a result of the new field, which organizes eBRCs, leading to fewer errors.
The system provides honest tracking because it confirms both legitimate export transactions and correct payment documentation.

What Exporters Need to Do

Exporters must prepare for the Mode of Export of Services in BRC by May 01, 2025. Here’s what’s needed:

Fill It In: Every electronic BRC demands inclusion of the service export mode. The absence of such information may result in delayed paperwork completion.

Learn the Types: The four GATS types need to be understood by both exporters and banks, who will select appropriate service modes.

Fix Systems: Companies might need to update their software to include the Mode of Export of Services in BRC, especially for automatic uploads.

Keep Records: During evaluation checks, it is necessary to maintain documentation showing service delivery methods for eBRC entry verification.

Get Help: The DGFT provides a website guide named “Learn” under “Application Help and FAQs -> eBRC,” which contains all the necessary information. The DGFT Helpdesk enables phone contact, and users can submit queries through the ebrc-dgft@gov.in email address.

Tips for Exporters

Master the four GATS categories, which determine proper service classifications, correctly.

Your systems need an update before May 01, 2025.
Revise your query by consulting the DGFT guides and reaching out to their help service outlet.
Monitor new trade regulations that DGFT and FEMA publish.
You and your bank should collaborate to manage payment transactions as well as electronic bank receipt certificates (eBRCs).

How MYGST Refund Can Help

At MYGST Refund, we help businesses—especially exporters—get their GST Refund without the usual headache. Starting May 1, 2025, there’s a new rule about how you show your export of services in the BRC (Bank Realization Certificate). Don’t worry—we’re ready for it.

Our team takes care of the paperwork, like matching your eBRCs and export invoices the right way, so they follow DGFT and FEMA rules. We’ve been doing this for years, and we know how to avoid the common mistakes that slow things down.

If you’re exporting services and want your GST Refund without the runaround, we’re here to help.

Pro Tips: Plan Ahead and Easily Calculate Your GST Refund with Our Online GST Refund Calculator Tool!

Final Thoughts

The “Mode of Export of Services” in BRC is a smart move to improve how India tracks service exports. The adoption of GATS global standards enables India to present improved trade data, which enhances its international trade position. Active exporters need to study service classification and upgrade their systems while utilising resources from the DGFT.

Frequently Asked Questions

What are the modes of export of services?
The modes are four GATS categories: cross-border supply (remote services), consumption abroad (foreigners using services in India), commercial presence (Indian firms abroad), and presence of natural persons (Indian workers abroad).

Is BRC needed for goods exports?
Yes, a BRC or eBRC is required to prove payment for both goods and services, as per FEMA rules.

Who issues the eBRC?
Exporters create the eBRC on the DGFT’s online system, with banks (authorized dealers) checking and certifying payment details.

How are service exports different from goods exports?
Service exports involve intangible things like IT or consulting, often without shipping, while goods exports involve physical products. Services use GATS modes, while goods use shipping bills.

Why know the modes of service export?
Knowing the modes helps you fill out eBRCs correctly, follow rules, and provide accurate trade data for government planning.

What’s the new DGFT rule?
The DGFT added the Mode of Export of Services in the BRC field to eBRCs, starting May 01, 2025, to better track service exports using GATS categories.