Export of Services Invoice under GST: LUT, Currency and the Exact Wording

Short answer: a service is an export when you are in India, your client is outside India, the place of supply is outside India, you are paid in convertible foreign exchange (or in rupees where the RBI allows), and you and the client are not just two branches of the same entity. Exports are zero-rated: file a Letter of Undertaking (LUT) in Form GST RFD-11 and you can invoice without IGST. The invoice must say so.

This guide explains the general GST rules as published by CBIC. Rates, thresholds and notifications change; confirm your own case with your CA before relying on it.

The five conditions (section 2(6) of the IGST Act)

• The supplier is located in India.
• The recipient is located outside India.
• The place of supply is outside India.
• Payment is received in convertible foreign exchange, or in Indian rupees where the RBI permits.
• Supplier and recipient are not merely establishments of the same person.

Place of supply is the condition most often missed: some services, such as those on goods physically in India or on immovable property in India, have their place of supply in India even for a foreign client.

Two ways to zero-rate

• Under LUT, without IGST — the common choice. File the LUT on the GST portal for the financial year before you invoice, then claim a refund of unused input credit if you need it.
• Pay IGST and claim a refund of the tax paid.

What the invoice must show

• All the usual tax invoice fields, with your GSTIN and the client's name and address abroad.
• The endorsement: "Supply meant for export of services under Letter of Undertaking without payment of integrated tax" (or "on payment of integrated tax" if you chose that route).
• The currency of the invoice and the amount; report the rupee value in GSTR-1 as an export.
• For services, issue it within 30 days of the supply.

Proof to keep

Keep the foreign inward remittance proof from your bank (FIRC or e-BRC) for each export invoice. Without it, the export condition on payment is hard to show.

How this works in Grovia

Raise the invoice in your client's currency, set the tax on the lines to 0%, and add the LUT endorsement in the invoice notes — Grovia prints it on the PDF. Grovia does not file the LUT or your returns, and does not decide whether your service qualifies as an export.

Grovia is one platform for service businesses — leads, quotations, GST invoicing, accounts, projects, HR and support. Start a free 14-day trial (no card needed).

Frequently Asked Questions

Is GST charged on export of services?

Exports are zero-rated. Under an LUT you charge no IGST; otherwise you pay IGST and claim a refund.

What should an export invoice say under LUT?

"Supply meant for export of services under Letter of Undertaking without payment of integrated tax", along with the normal tax invoice details.

How do I file an LUT?

In Form GST RFD-11 on the GST portal, for each financial year, before you issue zero-rated invoices under it.

Can I invoice a foreign client in US dollars?

Yes. Report the rupee value in GSTR-1 and keep the bank's remittance proof.