Surat is better known for exporting goods, diamonds and textiles above all, but a growing number of Surat businesses also export services, and those service invoices need a monthly EDF filed with the AD bank. If your business ships goods and also bills foreign clients for services such as design or IT work, the two follow separate processes: goods go through the shipping bill route, while services go on one monthly EDF due within 30 days from the end of the invoice month. Keeping them apart is the single most useful habit for a Surat exporter.
Key takeaways
- Surat's service exporters include jewellery CAD and design studios, textile design houses, IT firms, accounting practices and digital agencies.
- Goods exports at EDI ports use the shipping bill as the EDF; service exports need the separate monthly EDF.
- Merchanting trade, common in commodity and gem trading, is not an export of services; do not put it on the services EDF.
- Proprietorships and partnership firms should assume they are covered; individuals should note RBI's 7 October 2026 statement.
- Ask your AD bank how it accepts EDFs; the channel differs bank to bank.
Who exports services from Surat
The city's service exports often grow out of its goods industries. Some typical examples:
- Jewellery CAD and 3D design studios creating models for jewellers abroad.
- Textile and print design studios selling designs and artwork to overseas apparel brands.
- IT companies and software developers building for foreign clients.
- Chartered accountants and bookkeeping firms serving clients abroad.
- Digital marketing, photography and catalogue production for foreign e-commerce sellers.
- Back-office and data services for overseas trading companies.
Many of these businesses also sell goods abroad, or are part of a family group that does. That overlap is where most confusion begins.
Goods and services: two different tracks
| Point | Goods export | Services export |
|---|---|---|
| Declaration | At EDI ports, the shipping bill serves as the EDF; non-EDI ports use a manual EDF | Monthly EDF in the Annex format |
| EDF part used | Part 2A | Part 2B, one row per invoice |
| When | With each shipment | Within 30 days from the end of the invoice month |
| Where filed | Through the customs process | AD bank (or SEZ Development Commissioner for SEZ units) |
| Realisation | Per the goods rules | 9 months from invoice date (12 if in rupees) |
The goods process is largely unchanged under the 2026 regulations. The services EDF is the newer obligation for many Surat firms, because SOFTEX is gone and a single EDF now covers all service exports. Our article on EDF for services vs goods explains the differences in detail.
Merchanting trade is not a service export
Surat's trading community often deals in merchanting trade: buying goods from one foreign country and selling them to another without the goods entering India. It can look like a service, because the Indian firm earns a margin for arranging the deal, but it is a distinct category with its own rules.
Do not list merchanting transactions in Part 2B of your services EDF. Our explainer on merchanting trade vs export of services sets out the distinction; ask your bank how it wants merchanting deals reported.
Services on goods: a grey area to raise early
Some Surat firms process goods owned by foreign companies, such as working on stones or fabric sent from abroad and returned after processing. These arrangements raise questions under both FEMA and GST, including whether they are treated as goods or services and where the place of supply is. Do not guess. Speak to your CA and your bank before deciding which form to use.
Proprietorships, partnerships and individuals
If your business is a proprietorship or a partnership firm, as many family-run firms are, assume the EDF applies to your service exports. Our guide to EDF for partnership firms covers the details, including who signs.
Individuals are different for now. At RBI's policy press conference on 7 October 2026, the Governor said individuals providing services abroad are not required to report, and RBI said FAQs would follow. The Regulations have not been amended yet, so freelancers in Surat working in their own name should check with their bank.
Working with your AD bank in Surat
Surat has branches of all the major banks, and many firms already have a trade relationship for goods exports. Use that relationship, but do not assume the goods team handles service EDFs the same way. Ask:
- Which AD code applies to service export receipts in our account?
- How do you accept the monthly services EDF: branch, email or net banking?
- What should we attach, if anything?
- How should we give the ₹10 lakh realisation declaration for small invoices?
Banks must publish their own EDF policies, so the answers can differ between banks.
A worked example
Kesar Gems & Design LLP, a Surat partnership, exports polished jewellery to retailers in the US and also runs a CAD studio designing jewellery models for clients in Antwerp and Hong Kong. Its goods shipments go through the shipping bill route as before.
For the CAD studio, Kesar raised three service invoices in January 2027: EUR 4,800 to an Antwerp jeweller, USD 3,600 to a Hong Kong manufacturer and EUR 1,900 to a second Antwerp client. These go on one services EDF for January, due by 2 March 2027, with three rows in Part 2B, Services in field 1.1 and Internet in field 1.4, since the 3D files were delivered online.
The partners keep two separate folders: shipping bills and goods documentation in one, service invoices, EDFs and FIRAs in the other. When an Antwerp client pays one invoice together with an unrelated goods purchase, Kesar asks the client to split future payments and writes to the bank explaining which part relates to which invoice.
Exporters in nearby Ahmedabad and Vadodara follow the same rules; see our Ahmedabad guide for a comparison. This is general information, not legal or tax advice.
Frequently asked questions
Do Surat goods exporters also need to file the services EDF?
Only if they also export services. Goods follow the shipping bill route, while any service invoices to foreign clients, such as design or IT work, go on the monthly services EDF with the AD bank.
Can I put goods and services on the same EDF?
They follow different processes. Goods at EDI ports are declared through the shipping bill, while services are listed in Part 2B of the monthly EDF. Ask your bank if you have an unusual case that seems to combine both.
Is commission earned on diamond trading a service export?
It depends on the arrangement. Merchanting trade, where goods move between two foreign countries, is a separate category. A pure commission or agency arrangement has its own questions. Ask your bank and CA how to classify it before filing.
Where do Surat service exporters file the EDF?
With the AD bank where foreign payments arrive, if they are outside an SEZ. Units in an SEZ file with the SEZ Development Commissioner.
When is the EDF due for a Surat business?
The deadline is the same across India: within 30 days from the end of the month in which the invoice was raised. January 2027 invoices, for example, are due by 2 March 2027.
Bottom line
Surat exporters do best when they keep goods and services on separate tracks and treat merchanting as its own category. For the services side, prepare each month's declaration with our free EDF form generator.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.