Healthcare IT companies in India that bill hospitals, insurers, health-tech startups or digital health platforms abroad declare those exports on the monthly Export Declaration Form. From 1 October 2026, every invoice dated in a month goes on one EDF, due within 30 days from the end of that month, filed with your AD bank (or STPI for software, or the SEZ Development Commissioner for SEZ units). Healthcare IT billing is a mix of implementation fees, platform subscriptions and usage charges, and each of those needs to land on the form as a clean, traceable row.
Key takeaways
- Choose "Software" or "Services" at field 1.1 depending on what you mainly supply; ask your bank where a month mixes both.
- Delivery is almost always online, so "Internet" at field 1.4.
- Usage-based invoices (per claim, per scan, per encounter) are declared at the invoiced amount in the month the invoice is dated.
- Codes depend on your actual service: SAC 998313, 998314 or 998315 are common in IT; purpose codes P0802 or P0807 often apply. Confirm with your CA and bank.
- Realisation must happen within 9 months of each invoice date. Long hospital procurement cycles can test that.
What healthcare IT companies typically sell abroad
The sector covers very different businesses, and each bills differently.
| Business line | Typical client | Billing pattern | Likely field 1.1 |
|---|---|---|---|
| EHR / practice management implementation | Clinics, hospital groups | Milestones plus change requests | Software |
| Hosted platform or SaaS | Health-tech companies, payers | Monthly or annual subscription | Software |
| Claims processing technology | Insurers, billing companies | Per-transaction usage | Software or Services, ask bank |
| Interoperability and integration | Hospitals, labs | Fixed price plus support | Software |
| Analytics and reporting | Payers, providers | Retainer or per-report | Services or Software |
| Managed IT and support | Providers | Monthly fee | Services |
Where your work is closer to medical coding, billing or transcription performed by people rather than software, the industry guides for those services fit better. This article focuses on technology delivered online.
Usage-based invoices on the EDF
Usage billing is common in healthcare IT: a fee per claim adjudicated, per image processed, per active patient or per API call. The EDF does not care how you calculated the figure. It records the invoice.
- Raise the invoice for the usage period with a clear basis (for example, "September 2026: 182,400 claims processed at USD 0.11").
- Declare it on the EDF for the month the invoice is dated.
- If usage is later revised, issue a credit or debit note and keep it linked to the original invoice so the bank can understand any difference in realisation.
Our article on SaaS subscriptions and usage-based billing covers metered billing in more depth.
Codes: SAC and purpose codes
SAC. Implementation and development work is often 998314 (IT design and development). Ongoing support and consulting often fall under 998313. Hosting and infrastructure services may be 998315, and other IT services 998319. A platform contract that bundles hosting, licences and support needs a principal-supply call from your CA.
Purpose codes. For software, P0802 (software consultancy and implementation) and P0807 (off-site software exports) are the usual candidates. Analytics or research engagements may be coded differently, for example P1008 for R&D services, if that is what the work genuinely is. Your bank applies the code to each remittance, so tell it what the payment is for and check every FIRA. Our purpose code finder helps you shortlist codes before you talk to the bank.
Worked example: platform plus implementation
Vitalis Health Systems Pvt Ltd, a Chennai company, builds a hosted care-coordination platform. It is outside an SEZ and files with its AD bank. In October 2026 it invoiced three foreign clients:
| Row | Client | Invoice | Date | Basis | Amount |
|---|---|---|---|---|---|
| 1 | Home-care network, USA | VHS/2627/088 | 1 Oct | October platform subscription, 1,200 seats | USD 21,600 |
| 2 | Same client | VHS/2627/089 | 1 Oct | September usage overage, 4,300 extra visits at USD 0.75 | USD 3,225 |
| 3 | Digital clinic, UAE | VHS/2627/095 | 13 Oct | Implementation milestone 2 | USD 16,500 |
| 4 | Payer analytics firm, UK | VHS/2627/101 | 28 Oct | Quarterly analytics retainer | GBP 7,800 |
All four rows went on the October EDF, due 30 November 2026. Rows 1 and 3 each exceed ₹10 lakh, so they will need FIRAs and matching instructions for closure. Rows 2 and 4 are smaller and, once paid, can close through a periodic realisation declaration.
The US client pays both invoices in one transfer each month. Vitalis's finance team asked the client to quote both invoice numbers in the payment reference, which makes matching straightforward.
Realisation risks specific to healthcare clients
Healthcare buyers can be slow payers. Procurement approvals, budget cycles and acceptance testing all stretch timelines. Under the 2026 Regulations, each invoice must be realised within 9 months of its date (12 months if invoiced in rupees). Practical safeguards:
- Invoice milestones only when acceptance is genuinely achieved, so the clock starts when payment is realistically due.
- Track every invoice older than six months in your EDF register.
- If a client will clearly pay late, request an extension from your AD bank with reasons before the deadline.
GST, LUT and data
Healthcare IT exports are zero-rated when the Section 2(6) IGST conditions are met. Most companies export under LUT and print "Supply meant for export under LUT without payment of IGST" on invoices. Watch place of supply where services relate to anything physically in India. The EDF is a FEMA declaration and does not change your GST or income-tax position.
A separate point: never put patient data into invoices, EDF descriptions or bank letters. Describe the service ("platform subscription, October 2026"), not the people it served.
This is general information, not legal or tax advice.
Frequently asked questions
Do healthcare IT companies tick "Software" or "Services" on the EDF?
If you mainly supply software, implementation or a hosted platform, "Software" is usually appropriate. If you mainly supply people-led services, "Services" fits better. Where a month genuinely mixes both, ask your AD bank how it wants the form completed.
How do I declare a per-claim or per-transaction invoice?
Declare the invoice amount in the month the invoice is dated, with a clear description of the usage period. If usage is later revised, issue a credit or debit note and link it to the original invoice.
Can I file the healthcare software EDF with STPI?
Outside an SEZ, software exports can be filed with the AD bank or STPI. STPI certification is no longer mandatory. SEZ units file with the SEZ Development Commissioner.
What if a hospital client takes more than nine months to pay?
Ask your AD bank for an extension of the realisation period before the 9 months run out, with a short explanation and supporting emails. Do not wait until the deadline has passed.
Bottom line
Healthcare IT exports fit the EDF neatly once each subscription, usage charge and milestone is its own invoice with a clear basis. Keep codes consistent and watch slow-paying clients against the 9-month window. Generate this 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.