InvoiceKitQuick answer: If you are registered for GST and bill a client outside India, you can export services without charging IGST by filing a Letter of Undertaking (LUT, Form GST RFD-11) on the GST portal, generally once per financial year. The export invoice then carries a standard endorsement, the client's name and address, the delivery address, the country of destination and the amount in the foreign currency.
Step 1: file the LUT before you export
An export of services is a zero-rated supply. You can make it either by paying IGST and claiming a refund, or without paying IGST under a Letter of Undertaking. This page covers the LUT route. The LUT is Form GST RFD-11, filed online on the GST portal by a registered person, and it is generally filed once for each financial year, before you start exporting without paying IGST. The portal gives you an acknowledgement reference number (ARN), which is useful to quote on your invoices. The generator's notes box has a line for it.
Export of services invoice format: what to show
- Title: Tax Invoice. An export of services is a zero-rated taxable supply, so the document is a tax invoice with no IGST charged.
- Your details: name, address and GSTIN in the From box.
- Number and date: a consecutive serial number, unique for the financial year, and the date of issue.
- The client: the overseas client's full name and address in Bill to.
- Delivery address and country of destination: write them in the notes, as the preset does.
- Description and code: what you did, with the SAC code for the service. The example uses SAC 998314, which is for IT design and development services. Use the code that matches your own service.
- Value: the currency and amount, for example 40 hours at $50 gives $2,000.00.
- Tax: none charged, plus the endorsement below.
- Place of supply: outside India.
- Payment details: your bank and SWIFT code, so the client can send the money.
The endorsement to write on the invoice
An invoice issued under an LUT carries this wording:
SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX
In the generator, click Export under LUT under Declaration. The line is inserted exactly as written above and printed in bold at the top of the invoice, under the title, on screen and in the PDF.
Invoice for a foreign client from India: currency
You can bill in dollars, euros, pounds or another currency. Pick it in the generator and the invoice shows the currency and the amount. For your GST returns the value has to be stated in rupees using the exchange rate that the rules prescribe, so ask your CA which rate to use. Keep the bank's record of each foreign payment.
When a supply counts as an export of services
Not every invoice to a foreign client qualifies. The IGST Act sets conditions. For example, the supplier is in India, the client is outside India, the place of supply is outside India, and the payment is received in convertible foreign exchange (or in Indian rupees where the Reserve Bank of India permits). Other conditions also apply. If a condition is not met, IGST may be payable even though your client is abroad, so confirm the details for your service with a CA before you invoice without tax.
Not registered for GST?
An LUT is only for GST-registered suppliers. If you are a freelancer who is not required to register because your turnover is below the threshold, you do not file an LUT. You simply issue an invoice without GST. See the invoice format without GST. If you are a composition taxpayer or sell exempt items, the bill of supply format covers your domestic sales.
Make the export invoice here
- The generator above opens in US dollars with the tax rate at 0, the title set to Tax Invoice and the LUT endorsement filled in. Change the currency if you bill in something else.
- Add your name, address and GSTIN in From, and the client's name and address in Bill to.
- Edit the example item, hours and rate.
- Complete the notes: LUT ARN, country of destination and bank details with SWIFT code.
- Click Download PDF and choose Save as PDF.
Official sources
Forms, the LUT facility and notifications are on the GST portal. The text of the Acts and Rules is on the CBIC tax information site.
Related free tools
- Lucky draw coupon generator: numbered coupons for a customer or society event.
- UGC rate calculator: work out your rate before you invoice a brand.
FAQ
What is an LUT in GST?
A Letter of Undertaking (Form GST RFD-11) is filed online on the GST portal by a registered person. It lets you make an export without paying IGST. It is generally filed once per financial year.
Do I file an LUT for every invoice?
No. An LUT is generally filed once for the financial year and then covers your exports in that year. Check the current rules on the GST portal.
Can my export invoice be in US dollars?
Yes. Show the currency and the amount on the invoice. For GST returns the value is stated in rupees using the prescribed exchange rate, so ask your CA which rate to use.
Do freelancers who are not registered for GST need an LUT?
No. An LUT is for GST-registered suppliers. A freelancer who is not registered issues an invoice without GST. See the invoice format without GST page.
Is every invoice to a foreign client an export of services?
Not automatically. The IGST Act sets conditions, including that the place of supply is outside India and that payment is received in convertible foreign exchange. Confirm the details for your service with a CA.
General information, not tax advice. GST rules change; check the GST portal or ask a chartered accountant.
More invoice templates
Last updated · Written by the Rooh Sites team. This page is general information, not tax or legal advice.