Export Invoice

An export invoice is a tax invoice issued by a GST-registered Indian business for goods or services supplied to a buyer outside India, or to a Special Economic Zone (SEZ) unit. Under Section 16 of the IGST Act 2017, exports are classified as zero-rated supplies, meaning no GST is charged to the foreign buyer. Unlike exempt supplies where Input Tax Credit is blocked, zero-rated exports allow the Indian supplier to claim a full refund of ITC on the inputs used to produce the exported goods or services. An export invoice has the same mandatory fields as a regular GST invoice but requires additional export-specific declarations, the foreign currency amount alongside an INR equivalent, and either an LUT (Letter of Undertaking) reference number or an IGST payment detail depending on which route the exporter has chosen.

Quick reference

Governed by	Section 16 of the IGST Act 2017
Type of supply	Zero-rated supply
GST charged to foreign buyer	No
ITC on inputs	Claimable and refundable
Two routes	Export under LUT (no IGST) or Export with IGST payment
LUT form	Form GST RFD-11, filed on GST portal
LUT validity	One financial year (must be renewed annually by 31st March)
Reported in GSTR-1	Table 6A (Export Invoices)
Currency	Foreign currency with INR equivalent at RBI rate on invoice date
Proof of payment	FIRC (Foreign Inward Remittance Certificate) or e-FIRA

Zero-rated vs exempt: the critical difference for exporters

A common and costly mistake is confusing export invoices with exempt supply invoices. They are fundamentally different:

• Exempt supply: No GST charged, ITC on inputs is blocked and cannot be recovered
• Zero-rated supply (exports): No GST charged to the buyer, but ITC on inputs is fully claimable and can be refunded

This distinction is why an Indian software exporter who buys cloud services, laptops, and internet connections for their work can get a refund of the GST they paid on all those inputs, even though their client abroad pays zero GST. The supply is zero-rated, not exempt.

Two routes to export without GST

Route 1: Export under LUT (most used)

A Letter of Undertaking (LUT) is a declaration filed in Form GST RFD-11 on the GST portal. By filing an LUT, you undertake that you will export the goods or services and comply with all GST requirements. In exchange, you can raise export invoices with zero IGST without paying any tax upfront. The LUT is free to file, valid for one full financial year, and must be renewed each year before 31st March.

On the invoice, you must include the declaration: "Supply meant for export under LUT without payment of IGST" along with your LUT Application Reference Number (ARN).

This is the preferred route for the vast majority of Indian exporters because it does not block working capital.

Route 2: Export with IGST payment

If you have not filed an LUT or choose not to, you can export by paying the applicable IGST rate on the invoice upfront and then claiming a refund from the GST department after export is confirmed. This route involves more paperwork and the refund may take weeks or months, blocking your cash flow. It is rarely used by service exporters. For goods exporters, it is sometimes used when the refund process is faster through customs.

Five conditions for export of services

Under Section 2(6) of the IGST Act 2017, a supply of services qualifies as an export only when all five conditions are met simultaneously:

1. The supplier of the service is located in India
2. The recipient of the service is located outside India
3. The place of supply of the service is outside India
4. The payment for the service is received in convertible foreign exchange, or in Indian Rupees where permitted by the RBI (such as through a Special Rupee Vostro Account)
5. The supplier and recipient are not merely establishments of the same company or related persons under Explanation 1 to Section 8 of the IGST Act

If any one of these five conditions is not satisfied, the supply is not treated as an export of services. GST at the standard rate applies.

Important for Indian freelancers and IT service exporters: Condition 4 requires payment in foreign exchange or RBI-permitted INR. Receiving payment in Indian Rupees from a foreign client through a normal bank transfer does not automatically qualify as an export. Consult your CA if you receive INR from foreign clients to confirm whether your specific arrangement qualifies. Receiving via a Special Rupee Vostro Account or through RBI-authorised payment platforms is generally acceptable.

Export invoice example for Indian businesses

Vikram is a software developer in Chennai who builds a mobile app for a US-based startup for USD 5,000. He has filed his LUT for FY 2026-27 on the GST portal.

His export invoice includes:

• Invoice number: EXP/2026-27/001
• Invoice date: 1st April 2026
• Client: Tech Startup Inc., 123 Silicon Ave, San Francisco, CA 94105, USA
• Service: Mobile application development services
• SAC code: 9983
• Amount: USD 5,000
• INR equivalent: Rs. 4,17,500 (at RBI reference rate of 1 USD = Rs. 83.50 on 1st April 2026)
• IGST: Nil (zero-rated supply under LUT)
• Declaration: "Supply meant for export under LUT without payment of IGST. LUT ARN: AD330426012345, valid till 31st March 2027"
• Place of supply: Outside India, United States, as per Section 13(2) of the IGST Act 2017

Vikram receives USD 5,000 in his bank account, obtains an e-FIRA (electronic Foreign Inward Remittance Advice) as proof of receipt, and reports the invoice in GSTR-1 Table 6A showing Rs. 4,17,500 as the taxable value with zero IGST.

Mandatory fields on an export invoice

An export invoice must contain all standard GST tax invoice fields plus the following additional export-specific elements:

Standard GST fields:

• Name, address, and GSTIN of the supplier
• Unique serial number (exporters often maintain a separate series, e.g., EXP/2026-27/001)
• Invoice date
• Name and complete overseas address of the buyer
• Description of goods or services
• HSN code (for goods) or SAC code (for services)
• Quantity and unit if applicable

Export-specific additional fields:

• Foreign currency amount (e.g., USD 5,000)
• INR equivalent at the RBI reference rate on the invoice date (e.g., Rs. 4,17,500)
• The exchange rate used and its date source
• Place of supply clearly stated as "Outside India, [Country Name]" with Section reference
• Zero-rated declaration: "Supply meant for export under LUT without payment of IGST" or "Supply meant for export on payment of Integrated Tax"
• LUT ARN and validity dates (for LUT route)
• Shipping bill number and date (for goods exports, if available at invoice time)

Currency conversion on export invoices

For GST reporting purposes, the INR equivalent of a foreign currency invoice is calculated using the RBI reference rate on the invoice date (as per Rule 34(2) of the CGST Rules, which references AS-11 under generally accepted accounting principles).

Both the foreign currency amount and the INR equivalent must appear on the invoice. The INR value is what you report in GSTR-1 Table 6A and GSTR-3B.

If your bank converts the foreign currency at a different rate than the RBI rate, a small difference will arise. This is normal and is recorded as an exchange gain or loss in your accounts. It does not affect your GST return value, which is always based on the invoice date RBI rate.

FIRC and e-FIRA: proof of payment receipt

A FIRC (Foreign Inward Remittance Certificate) or its digital equivalent e-FIRA (electronic Foreign Inward Remittance Advice) is a document issued by your bank confirming that foreign currency has been received in your account from a specific foreign source. It shows the sender details, currency, amount, and purpose code.

FIRC or e-FIRA is required when:

• Claiming an ITC refund on export inputs (Form RFD-01)
• Responding to a GST audit query about export transactions
• Confirming LUT compliance (payment realisation within the stipulated period)

FIRC or e-FIRA is NOT required at the time of filing GSTR-1. You do not upload it to the GST portal routinely. Maintain it in your records and produce it when required for refunds or audits.

How to report export invoices in GST returns

GSTR-1

Export invoices are reported in Table 6A of GSTR-1. For each invoice, you report:

• Invoice number and date
• Name of the foreign buyer
• Total invoice value
• Taxable value in INR
• IGST amount (zero if under LUT, or the paid amount if using the IGST payment route)
• Whether the export is with payment or without payment of IGST
• Shipping bill number and date (for goods exports)

GSTR-3B

Export turnover is reported in GSTR-3B under the zero-rated supplies section. If you are claiming an ITC refund on export inputs, the accumulated ITC is also disclosed here.

Claiming ITC refund (Form RFD-01)

If your inputs attract GST and you cannot utilise the ITC against domestic tax liability, you can apply for a refund by filing Form RFD-01 on the GST portal. Attach export invoices, FIRC or e-FIRA, LUT acknowledgment, and input invoices showing the ITC you are claiming.

Export invoice vs domestic GST invoice

	Export Invoice	Domestic GST Invoice
Buyer location	Outside India	Inside India
GST charged	Nil (zero-rated)	At applicable rate
Currency	Foreign currency with INR equivalent	INR only
ITC on inputs	Claimable and refundable	Claimable and offsettable
Declaration required	Yes, LUT or IGST payment declaration	No
Reported in GSTR-1	Table 6A	Table 4A or 4B
FIRC required	Yes, for refunds and audit	Not applicable

Common export invoice mistakes Indian businesses make

• Not filing LUT before the first export of the financial year. LUT must be filed before you export, not after. If you export without an LUT and without paying IGST, the export does not qualify for zero-rating. You may need to pay IGST retrospectively with interest. File a fresh LUT at the start of each April.

• Not showing the INR equivalent on the invoice. Many Indian freelancers invoice entirely in USD or EUR without converting to INR. The GST portal requires you to report in INR. Always show both the foreign currency amount and the INR equivalent calculated at the RBI rate on the invoice date.

• Missing the place of supply declaration. The export invoice must clearly state that the place of supply is outside India, referencing the applicable section of the IGST Act. Without this line, the invoice may be treated as a domestic supply during an audit.

• Not collecting FIRC or e-FIRA. Many exporters, especially freelancers, forget to obtain proof of inward remittance from their bank or payment platform. Without it, ITC refunds will be rejected and audit queries cannot be resolved.

• Assuming an intermediary service qualifies as export. If you are facilitating a supply between two foreign parties rather than directly supplying a service yourself, you may be classified as an intermediary under Section 13(8)(b) of the IGST Act. Intermediary services have their place of supply fixed in India, making them taxable at 18% IGST, not zero-rated. Review your contract structure carefully if you are in a facilitation or agency role.

Frequently asked questions

What is an export invoice under GST?

An export invoice is a tax invoice issued by a GST-registered Indian supplier for goods or services supplied to a buyer outside India. Under Section 16 of the IGST Act 2017, exports are zero-rated supplies, so no GST is charged to the foreign buyer. The supplier can claim a refund of ITC on inputs used for the export. The invoice must be in foreign currency with an INR equivalent and must include an LUT declaration or IGST payment detail.

Do I charge GST on my export invoice?

No. If you have filed an LUT for the financial year, you raise the export invoice with zero GST and include the declaration "Supply meant for export under LUT without payment of IGST." If you have not filed an LUT, you can still export by paying the applicable IGST rate and claiming a refund later, but this blocks working capital. Most exporters file an LUT.

What is an LUT for exports?

An LUT (Letter of Undertaking) is a declaration filed in Form GST RFD-11 on the GST portal. It is free to file and valid for one full financial year. By filing an LUT, you declare that you will export goods or services and comply with GST requirements. In return, you can raise export invoices without paying IGST upfront. You must renew your LUT every year before 31st March.

Do I need a FIRC for every export invoice?

Not for routine GST filing. You do not upload FIRC to the GST portal when filing GSTR-1. However, you need FIRC or e-FIRA when claiming an ITC refund through Form RFD-01, or when the GST department sends an audit query about your exports. Always collect the FIRC or e-FIRA from your bank or payment platform for every export payment received.

What is the difference between export invoice and proforma invoice for exports?

A proforma invoice is a preliminary document sent before the supply is confirmed. It is not a legal GST document and does not create any tax liability. An export invoice is the final legal tax invoice raised after goods are dispatched or services are delivered. For GST purposes, only the final export invoice is reported in GSTR-1 and used for ITC refund claims.

Related terms

Zero-Rated Supply · Exempt Supply · LUT · IGST · Input Tax Credit · GSTR-1 · Proforma Invoice

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