For freelancers and businesses in India billing clients abroad. Invoice in your client’s currency; export of services under a Letter of Undertaking (LUT) is zero-rated, with no IGST charged.
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Services you supply from India to a client outside India, paid for in foreign exchange, generally count as an export of services. Exports are zero-rated: you can either pay IGST and claim a refund, or file a Letter of Undertaking (LUT) on the GST portal and invoice without paying IGST at all. The LUT route is usually simpler, as none of your money is locked up waiting for a refund.
An LUT covers one financial year, so renew it before each new year begins. If you aren’t registered under GST because your turnover is below the threshold, you simply invoice without GST. Whether a particular contract qualifies as an export can depend on its details, so check with your CA if you’re unsure.
Overseas clients usually pay by SWIFT bank transfer or through a payment platform. Put your account holder name, account number, bank, branch and IFSC on the invoice; type the IFSC into BillFlow and the bank and branch fill in automatically. A SWIFT transfer also needs your bank’s SWIFT code, so get it from your bank and add it in the notes.
When the money arrives, your bank can issue a FIRA or FIRC confirming the inward remittance. Keep it alongside a copy of the invoice. It’s your evidence that payment came in as foreign exchange, which matters for your GST records and returns.
Export of services is zero-rated. If you've filed a Letter of Undertaking (LUT), you invoice without IGST and add the LUT declaration shown in the notes.
INR, USD, EUR, GBP and AED. The amount in words follows the chosen currency.
You can, but the invoice currency should match what your contract says, and overseas clients usually find it simpler to pay in their own currency. BillFlow lets you switch between INR, USD, EUR, GBP and AED, and the amount in words updates to match.
It’s a Foreign Inward Remittance Advice or Certificate issued by your bank as proof that foreign money was received. Keep one for every export invoice, as it supports your claim that the supply was a zero-rated export.
Yes. An LUT applies for one financial year, so file a fresh one on the GST portal before you invoice exports without IGST in the new year.
No. Foreign businesses don’t have an Indian GSTIN, so leave that field empty and enter their company name, address and country instead. Your own GSTIN still goes on the invoice if you’re registered.