SOFTEX Filing in 2025–26: What Indian Software Exporters Must Know

Created By : Prashant Sharma

 

 

India’s software export industry continues to grow rapidly in FY 2025–26, contributing significantly to the GDP through IT services, digital solutions, and global technology delivery. SaaS companies, IT service providers, and tech startups are expanding into international markets, driven by rising global demand for cloud, AI, and digital transformation services.

 

Under the Foreign Exchange Management Act (FEMA), 1999, companies engaged in the export of software or IT-enabled services must declare their export invoices through SOFTEX filing. To comply, such companies must be registered with the Software Technology Parks of India (STPI) — either as an STPI unit or a non-STPI unit.

This enables them to submit SOFTEX declarations through the designated STPI authority.

What Is SOFTEX Filing?

SOFTEX filing is the process of reporting software export transactions to the Reserve Bank of India (RBI). The form:

• Must be filed within 30 days from the invoice date
• Includes export and client details
• Must be supported by digitally signed invoices

As per the Foreign Exchange Management Act (FEMA), 1999 – specifically FEMA 23(R) 2015-RB – companies engaged in the export of software or IT-enabled services are mandated by the Reserve Bank of India (RBI) to:

• Declare their software exports
• Realise and repatriate export proceeds
• File SOFTEX forms for each export transaction

Whether a company operates under STPI, Special Economic Zone (SEZ), or Domestic Tariff Area (DTA), SOFTEX filing is mandatory if the company is engaged in the export of software or IT services.

Why is it Mandatory?

SOFTEX allows RBI to track export earnings, verify invoice values, and ensure that all foreign payments received by Indian exporters are properly recorded under FEMA.

Common misconception: Many believe only big companies need SOFTEX, but even small IT firms, SaaS startups, consultants, and freelancers sending services to foreign clients are required to file SOFTEX for their export.

SOFTEX Filing Process: Step-by-Step (2025 Edition)

Step 1: Register your company with STPI

Companies involved in the export of services are required to be registered under STPI. They have the option to get themselves registered either as an STPI unit or a non-STPI unit.

Step 2: Prepare invoice details for each software export

Gather all invoices related to exports. The following details are required to be disclosed while filling the SOFTEX return:

a)   Contract date

b)   Client Name & Address

c)   Country where exports were made

d)   Export invoice & INR Value

e)   SOFTEX number

Step 3: Log into the STPI e-Filing portal (or SEZ online system)

STPI units use the STPI SOFTEX portal, SEZ units use the SEZ Online platform, and DTA units follow the prescribed online filing process. Ensure your DSC (Digital Signature Certificate) is active for authentication.

Step 4: Fill the SOFTEX form

Enter key data such as buyer information, contract value, invoice value, service description, and export classification. Accuracy is crucial because RBI uses SOFTEX values for foreign exchange monitoring.

Step 5: Submit digitally for STPI certification

Once submitted, STPI reviews and certifies the SOFTEX form. They may seek clarification if any mismatch or documentation gap is identified.

Step 6: Forward the approved form to your AD Bank for foreign exchange realisation

After certification, share the approved SOFTEX number and details with your Authorised Dealer (AD) bank. The bank uses these details to match and reconcile inward foreign remittances under FEMA guidelines.

 

STPI certification usually takes 3–7 working days, depending on the accuracy of documentation. Ensure the SOFTEX values exactly match the bank inward remittance amounts received from foreign clients. Any mismatch can delay foreign exchange realisation or trigger queries from the bank or STPI.

Current Compliance Trends You Need to Watch (2025–26)

The SOFTEX compliance ecosystem has already undergone significant modernization. Exporters should be aware of these ongoing changes:

• Fully Digital Filing: STPI locations have now shifted to 100% online SOFTEX filing, eliminating manual submissions and physical verification.
• Automated Bank Reconciliation: Compliance systems are becoming smarter, with automated matching of foreign inward remittances to export invoices.
• RBI’s New Data Accuracy Requirements: The RBI is placing greater emphasis on detailed export realisation reporting, requiring companies to submit accurate information.
• AI-based Fraud Detection: STPI authorities and AD banks are increasingly using AI-driven tools to ensure accuracy between declared export invoices and actual inward remittances.
• GST & Income Tax Synchronisation: Authorities are focusing on consistency across all tax filings, ensuring that export revenue declared in SOFTEX matches the figures reported in GST returns and income tax filings – improving data transparency.
• Simplified Norms for SaaS Exporters: With the rise of subscription-based software models, updated norms provide simpler and clearer compliance rules for SaaS companies.

Common Mistakes Exporters Still Make

• Missing the 30-day SOFTEX filing deadline from the invoice date.
• Errors such as incorrect currency, mismatched buyer names, missing addresses, or incorrect contract details — leading to STPI queries or resubmission.
• Failure to declare partial remittances, refunds, or credit notes, resulting in mismatches between export value and foreign exchange realised.
• Not providing certified SOFTEX details to the Authorised Dealer (AD) bank, causing delays in reconciliation under FEMA.

Penalties and Consequences of Non-Compliance

Under FEMA guidelines, failure to file SOFTEX forms on time (within 30 days of the invoice date) can result in rejection of the application. In such cases, the application must be resubmitted along with the condonation process and penalties (where applicable).

When SOFTEX forms are missing or delayed, the AD bank cannot match inward remittances with export invoices. This leads to repeated queries from the bank and STPI authorities.

 

Case example: A mid-sized IT services company exporting software for two years without filing SOFTEX was flagged during bank reconciliation. The STPI authorities issued notices, and the RBI categorized the case as a FEMA violation. The company had to file delayed SOFTEX forms with condonation and penalties (where applicable), submit additional documentation, and undergo strict scrutiny for all past export invoices.

How to Simplify SOFTEX Compliance – Best Practices for 2025–26

Maintain a centralised invoice and remittance tracker

Create an Excel spreadsheet where all export invoices, SOFTEX filings, and inward remittances are tracked together. This helps ensure timely STPI compliance.

Automate data through ERP or accounting systems (Zoho, Tally, QuickBooks)

Use integrated accounting software that automatically captures invoice details, currency values, and exports data. This will reduce manual errors and ensure cleaner SOFTEX forms.

Engage professional advisory support (like AKM Global)

STPI/SOFTEX compliance is technical and time sensitive. Professional consultants help companies avoid FEMA violations, handle filings correctly, and ensure proper coordination between STPI authorities and AD Banks.

Utilize a monthly filing schedule to ensure compliance

Keep an organized monthly timetable for SOFTEX submissions to avoid missing deadlines.

Preserve electronic records for auditing purposes

Keep all invoices, contracts, SOFTEX confirmations, and bank remittance evidence in digital folders for convenient access.

 

What’s Coming Next for SOFTEX Compliance – Future Outlook

Regulatory technology and policy updates will continue shaping a smoother, more automated compliance system:

• RBI–STPI System Integration:

STPI is expected to integrate more closely with RBI systems, enabling automatic verification of inward remittances against SOFTEX filings. This will reduce the manual intervention currently required by exporters and eliminate repeated follow-ups from banks and STPI officers.

• Simplified compliance framework expected for SaaS startups:

Recognizing the exponential growth of SaaS exports, policymakers are working towards simplified SOFTEX norms—shorter forms, fewer attachments, and quicker approvals.

• Faster Approvals Through Self-Certification:

STPI may expand self-certification options for eligible companies with good compliance history. This will reduce approval timelines and allow exporters to file SOFTEX with minimal officer-level scrutiny, similar to existing self-declaration frameworks in GST and income tax.

• Stronger Data Convergence Across Authorities:

There is an increasing push towards data alignment between SOFTEX filings, GST returns (GSTR-1), and foreign inward remittances (FIRCs). Linking these systems can help:

o   Auto-validate export turnover

o   Reduce discrepancies during audits

o   Strengthen claim eligibility under export incentives or refund schemes

How AKM Global Helps with SOFTEX and Export Compliance

With years of experience supporting exporters across sectors, AKM Global understands the unique challenges faced by IT, SaaS, and consulting firms across India. We can assist with:

• End-to-End Assistance with STPI/SEZ Registration

From obtaining registrations to managing ongoing SOFTEX and APR submissions, we ensure smooth handling of all compliance touchpoints.

• SOFTEX Filing and Reconciliation Support
  • Preparing SOFTEX forms
  • Validating invoice details and export values
  • Coordinating with STPI for timely approvals
  • Reconciling inward remittances with submitted SOFTEX data
• FEMA and RBI Reporting Compliance
  • Foreign inward remittance tracking
  • FLA return preparation
  • APR and ODI compliance (as applicable)
  • Responding to AD Bank and RBI queries arising from mismatched or delayed SOFTEX filings
• Export Documentation and Audit Reviews

The team performs detailed export documentation audits, ensuring all invoices, agreements, subscription records, and payment proofs are compliant. This helps companies avoid future disputes with STPI, RBI, or tax authorities during audits or reconciliation exercises.

 

Reach out to our export compliance experts at info@akmglobal.in.

 

SOFTEX compliance is more than a regulatory checkbox — it’s like keeping your financial passport stamped and valid. Staying compliant isn’t just about avoiding penalties — it builds credibility with banks, investors, and global clients.

 

Timely and accurate filing shows that your export business is strong, transparent, and aligned with RBI–STPI requirements. strengthens trust and shows that the exporter follows RBI–STPI regulations responsibly. As compliance becomes smarter, faster, and fully digital in 2025–26, the companies that stay proactive will stay ahead. Those who prepare early will enjoy quicker approvals, smoother foreign exchange reconciliation, and stronger credibility in every international transaction.

 

Schedule a consultation with our experts at AKM Global to streamline your SOFTEX compliance process or write to us at info@akmglobal.in.

FAQs:

What is the deadline for SOFTEX filing?

The SOFTEX form must be filed within 30 days from the date of the invoice for every software export transaction.

Do freelancers need to file SOFTEX?

Yes. Freelancers exporting IT services, software, design, development, consulting, or SaaS to foreign clients must file SOFTEX, even if:

• They are not a company.
• They export small amounts.
• They receive payments via platforms like PayPal, Wise, or wire transfer.

How can I file SOFTEX if I’m not an STPI-registered unit?

If you are not registered with STPI, you can still file SOFTEX under: Non-STPI Unit Category (DTA Unit) or SEZ online system (if operating inside SEZ).

You do not need full STPI registration just to file SOFTEX. You only need to create a login under the STPI e-Filing portal designated for non-STPI units.

What documents are required for submission?

Typical documents needed for SOFTEX filing include:

• Export invoice(s)
• Agreement/Work Order/PO with the foreign client
• Bank Inward Remittance Proof (FIRC/Bank Advice/SWIFT Copy)
• Datacom/Internet bill
• RBI Softex form
• Screenshot of work delivered (if applicable)
• Supporting documents for SaaS or subscription-based services (if recurring)

Additional documents may be required if STPI requests clarification.

Can SOFTEX be filed in bulk for multiple invoices?

Yes. STPI allows bulk SOFTEX filing for:

• Multiple invoices for the same client
• Monthly SaaS subscription invoices
• Multiple export transactions within the same period

You can upload multiple invoice details in one batch through the STPI e-Filing portal, but each invoice will still be certified individually.