The moment you sell to a foreign customer, your simple domestic invoice turns into a three-way conversation between you, your buyer, and the Indian government.

Exports are 'zero-rated' under GST, but that does not mean 'no paperwork' — it means you either export under LUT without charging tax, or you charge IGST and later claim a refund.

This guide walks through how Indian exporters should structure invoices, choose between LUT and IGST, handle foreign currency, and keep banks, customs, and GST all in sync.

Stop fighting with invoice templates.

Generate a legally compliant, highly professional invoice in under 60 seconds.
No signup required to start. No credit card. Just type, send, done.

Show me how

Zero-rated vs exempt: what export actually means under GST

Under Indian GST, exports of goods and services are classified as zero-rated supplies, which is very different from exempt supplies — you can still claim input tax credit on your purchases.
You have two options: export under LUT/Bond and charge 0% GST on the invoice, or export on payment of IGST and later claim a refund of the IGST paid.
For goods, 'export' is only complete when goods physically cross India's customs frontier with proper shipping bills; for services, export status depends on factors like place of supply and whether payment is received in convertible foreign currency.
Choosing the right route affects both your cash flow and your compliance burden, so it should be a planned decision, not something you fill at the last minute on the portal.

Export under LUT: when and how to use it

If you are a regular exporter, using a Letter of Undertaking (LUT) usually makes financial sense because you do not have to pay IGST upfront and wait months for refunds.
You apply for LUT online on the GST portal once per financial year, declaring that you will comply with export conditions and bring the foreign exchange back within prescribed timelines.
Once LUT is approved, your export invoices should clearly mention 'Supply meant for export under LUT without payment of IGST' along with your LUT reference year.
If you fail to realize export proceeds within the allowed time or do not complete export documentation, tax authorities can treat the supply as domestic and demand GST with interest.

Structuring an export invoice: fields Indian exporters cannot afford to miss

In addition to standard GST invoice fields, export invoices must mention the type of export (with payment of IGST or under LUT), the country of destination, and, for goods, the port of loading and destination.
Currency becomes a first-class field: you specify the invoice value both in foreign currency (for your buyer) and its INR equivalent (for GST and bank reporting), using the reference rate on the agreed date.
Include your IEC (Importer-Exporter Code), bank details for inward remittance, and often the buyer's full address with country and ZIP, since this flows into shipping bills and bank documents.
For goods, link your invoice to the shipping bill and packing list; for services, keep a clear trail of contracts, emails, and timesheets that prove the service was 'exported' according to GST rules.

Getting the money home: banks, FIRC, and reconciliation

When your foreign customer pays, the money usually lands via SWIFT into your Indian bank account, converted into INR at a specific exchange rate with bank charges and correspondent bank fees.
Ask your bank for a Foreign Inward Remittance Certificate (FIRC) or equivalent advice for each export payment, and keep it mapped to invoice numbers — this is your proof that export proceeds were realized.
Because FX rates move, the INR you receive will rarely match the INR you originally invoiced; treat this difference as exchange gain or loss in your books, not as an invoicing error.
For service exporters especially, being able to cleanly show 'invoice → foreign inward remittance → FIRC → GST returns' can save you from future questions during scrutiny.

IGST refunds on exports: paperwork vs cash flow trade-offs

If you export goods on payment of IGST, your refund is usually processed by linking your GSTR-1 and shipping bill data; mismatches here are the number one reason refunds get stuck.
For services, IGST refunds are slower and more documentation-heavy, so many service exporters prefer LUT to avoid the refund cycle altogether.
Whichever path you choose, keep a simple tracker of export invoices, LUT status, shipping bills, FIRCs, and refund applications, so you and your CA are not reconstructing this from memory months later.
If you frequently face GST cash block because of exports, talk to your CA about whether switching more supplies to LUT or tweaking your input purchase structure can ease the pressure.

Zero-rated vs exempt: what export actually means under GST

Under Indian GST, exports of goods and services are classified as zero-rated supplies, which is very different from exempt supplies — you can still claim input tax credit on your purchases.

You have two options: export under LUT/Bond and charge 0% GST on the invoice, or export on payment of IGST and later claim a refund of the IGST paid.

For goods, 'export' is only complete when goods physically cross India's customs frontier with proper shipping bills; for services, export status depends on factors like place of supply and whether payment is received in convertible foreign currency.

Choosing the right route affects both your cash flow and your compliance burden, so it should be a planned decision, not something you fill at the last minute on the portal.

Export under LUT: when and how to use it

If you are a regular exporter, using a Letter of Undertaking (LUT) usually makes financial sense because you do not have to pay IGST upfront and wait months for refunds.

You apply for LUT online on the GST portal once per financial year, declaring that you will comply with export conditions and bring the foreign exchange back within prescribed timelines.

Once LUT is approved, your export invoices should clearly mention 'Supply meant for export under LUT without payment of IGST' along with your LUT reference year.

If you fail to realize export proceeds within the allowed time or do not complete export documentation, tax authorities can treat the supply as domestic and demand GST with interest.

Structuring an export invoice: fields Indian exporters cannot afford to miss

In addition to standard GST invoice fields, export invoices must mention the type of export (with payment of IGST or under LUT), the country of destination, and, for goods, the port of loading and destination.

Currency becomes a first-class field: you specify the invoice value both in foreign currency (for your buyer) and its INR equivalent (for GST and bank reporting), using the reference rate on the agreed date.

Include your IEC (Importer-Exporter Code), bank details for inward remittance, and often the buyer's full address with country and ZIP, since this flows into shipping bills and bank documents.

For goods, link your invoice to the shipping bill and packing list; for services, keep a clear trail of contracts, emails, and timesheets that prove the service was 'exported' according to GST rules.

Getting the money home: banks, FIRC, and reconciliation

When your foreign customer pays, the money usually lands via SWIFT into your Indian bank account, converted into INR at a specific exchange rate with bank charges and correspondent bank fees.

Ask your bank for a Foreign Inward Remittance Certificate (FIRC) or equivalent advice for each export payment, and keep it mapped to invoice numbers — this is your proof that export proceeds were realized.

Because FX rates move, the INR you receive will rarely match the INR you originally invoiced; treat this difference as exchange gain or loss in your books, not as an invoicing error.

For service exporters especially, being able to cleanly show 'invoice → foreign inward remittance → FIRC → GST returns' can save you from future questions during scrutiny.

IGST refunds on exports: paperwork vs cash flow trade-offs

If you export goods on payment of IGST, your refund is usually processed by linking your GSTR-1 and shipping bill data; mismatches here are the number one reason refunds get stuck.

For services, IGST refunds are slower and more documentation-heavy, so many service exporters prefer LUT to avoid the refund cycle altogether.

Whichever path you choose, keep a simple tracker of export invoices, LUT status, shipping bills, FIRCs, and refund applications, so you and your CA are not reconstructing this from memory months later.

If you frequently face GST cash block because of exports, talk to your CA about whether switching more supplies to LUT or tweaking your input purchase structure can ease the pressure.

Export invoicing for Indian businesses — LUT, IGST refund, and getting paid from abroad

Stop fighting with invoice templates.

Zero-rated vs exempt: what export actually means under GST

Export under LUT: when and how to use it

Structuring an export invoice: fields Indian exporters cannot afford to miss

Getting the money home: banks, FIRC, and reconciliation

IGST refunds on exports: paperwork vs cash flow trade-offs

Keep reading

GST tax invoice rules in India: every mandatory field explained

HSN and SAC codes explained — a practical guide for Indian businesses

Export invoicing for Indian businesses — LUT, IGST refund, and getting paid from abroad

Stop fighting with invoice templates.

Zero-rated vs exempt: what export actually means under GST

Export under LUT: when and how to use it

Structuring an export invoice: fields Indian exporters cannot afford to miss

Getting the money home: banks, FIRC, and reconciliation

IGST refunds on exports: paperwork vs cash flow trade-offs

Keep reading

GST tax invoice rules in India: every mandatory field explained

HSN and SAC codes explained — a practical guide for Indian businesses