Exporting goods or services from India? Your invoice must meet specific GST requirements — LUT bond, zero-rated supply declaration, foreign currency rules, and shipping bill linkage. Here is everything you need to know.
An export invoice under GST is fundamentally different from a domestic GST invoice. When you export goods or services, the supply is treated as a zero-rated supply under Section 16 of the IGST Act. This means GST is either charged at 0% (if you have a Letter of Undertaking) or charged at 0.1% IGST and then refunded.
The export invoice must carry specific declarations, reference the shipping bill or bill of export, and comply with both GST rules and the Foreign Exchange Management Act (FEMA). A domestic GST invoice with 'Export' written on it does not satisfy these requirements — the format, fields, and declarations are distinct.
This guide covers the complete export invoice format for goods and services, the LUT bond process, zero-rated supply rules, foreign currency invoicing, and how to link your invoice to the shipping bill for IGST refund. If you are exporting regularly, use our free invoice generator which supports export invoice format with all mandatory fields built in.
All 16 fields are required. Missing even one can delay your IGST refund or customs clearance.
A Letter of Undertaking (LUT) under Form GST RFD-11 allows registered exporters to export goods and services without paying IGST upfront. Instead of charging IGST and then claiming a refund, you charge 0% GST on the export invoice — saving working capital that would otherwise be locked up in refund claims.
Who can file LUT? Any GST-registered exporter can file LUT unless they have been prosecuted for tax evasion of more than Rs 2.5 crore under the CGST Act or IGST Act. Practically, this means almost all exporters qualify.
How to file LUT:
1. Log in to the GST portal (gst.gov.in)
2. Navigate to Services > User Services > Furnish Letter of Undertaking (LUT)
3. Select the financial year (LUT must be filed for each financial year separately)
4. Fill in Form GST RFD-11 — declare that you are an exporter, provide bank details, and accept the undertaking
5. Submit with DSC or EVC
6. A reference number is generated immediately — use this on all export invoices for that financial year
LUT validity: One financial year. For FY 2026-27, file a fresh LUT before April 1, 2026. You can file the new year's LUT from the GST portal starting March 1 of the current year.
If you export without LUT: You must charge IGST at the applicable rate on the export invoice. You then file Form GST RFD-01 to claim a refund of the IGST paid. The refund process takes 60-90 days typically and requires shipping bill data to match your GST return data.
We recommend all regular exporters file LUT at the start of every financial year. It is a one-time online process and saves significant working capital by eliminating the need to pay IGST upfront and wait for refunds. In myBillPlease, you can store your LUT reference number and it auto-populates on every export invoice you create.
Zero-rated supply has two categories under GST — both allow you to export without effective GST burden
| Feature | Aspect | Export of Goods/Services | Supply to SEZ Unit/Developer |
|---|---|---|---|
| Definition | Supply to a place outside India | Supply to a Special Economic Zone unit within India | |
| IGST treatment | 0% with LUT or IGST paid and refunded | 0% with LUT or IGST paid and refunded | |
| Document required | Shipping bill / Bill of export (goods), FIRC/BRC (services) | SEZ endorsement on invoice, bill of supply or tax invoice | |
| Refund mechanism | IGST refund via GST portal linked to shipping bill | ITC refund or upfront 0% supply via LUT | |
| Invoice type | Tax invoice with zero-rated declaration | Tax invoice with SEZ supply declaration | |
| GSTR-1 reporting | Table 6A — Export invoices | Table 6B — Supply to SEZ with/without payment |
Export invoices are typically raised in foreign currency — USD, EUR, GBP, AED, or whichever currency the buyer pays in. GST law permits this but requires the invoice to also show the equivalent INR value for GST computation purposes.
Exchange rate to use: The RBI reference rate on the date of invoice. If RBI does not publish a rate for the specific currency pair, the authorized dealer (your bank) rate applies. The exchange rate must be stated on the invoice.
Example: Invoice raised for USD 10,000 on March 20, 2026. RBI reference rate on that date: 1 USD = Rs 84.50. Invoice INR value: Rs 8,45,000. This INR value is used for GST return purposes.
FIRC (Foreign Inward Remittance Certificate): After the buyer pays, your bank issues a FIRC (for wire transfers) or BRC (Bank Realization Certificate for older transactions). This is the primary proof of export realization and is required for:
For goods exports: The primary proof of export is the shipping bill, not the FIRC. However, FIRC/BRC is still required for export benefits and for closing the export obligation if you have an advance license or EPCG scheme.
Time limit for realization: Export proceeds must be realized within 9 months from the date of export (extended to 15 months for certain categories). If payment is delayed beyond this period, you must apply to RBI for an extension to avoid FEMA penalties.
For exporters who pay IGST on exports (not using LUT), the refund is processed automatically once the customs system (ICEGATE) and the GST portal exchange data. Here is how the linkage works:
Step 1: File your export invoice in GSTR-1 under Table 6A. Include: invoice number, date, HSN/SAC code, taxable value, and IGST paid.
Step 2: Your customs broker (CHA) files the shipping bill on ICEGATE. The shipping bill references your GST invoice number and GSTIN.
Step 3: ICEGATE sends the shipping bill data to the GST portal. The system matches the invoice data in your GSTR-1 with the shipping bill. When there is a match, the refund is processed automatically — credited directly to your bank account within 30 days in most cases.
Common mismatch errors that delay refund:
To avoid delays, ensure your export invoice is created with the exact invoice number that your CHA will use on the shipping bill. Keep a copy of both documents together.
Services exported from India are treated as zero-rated supply only if they meet the definition under Section 2(6) of the IGST Act. The conditions are:
1. The supplier is located in India
2. The recipient is located outside India
3. The place of supply is outside India
4. Payment is received in convertible foreign exchange OR in Indian Rupees wherever permitted by RBI
5. The supplier and recipient are not merely different establishments of the same person
FIRC requirement: For service exporters, the FIRC/BRC is the critical document. Since there is no shipping bill for services, the FIRC is the proof that the export took place and that foreign exchange was received.
If you are an IT company, consultant, designer, or any service provider invoicing foreign clients, file LUT at the start of each financial year and raise invoices with 0% IGST. When payment comes in, your bank will issue an FIRC — retain this for at least 7 years for GST audit purposes.
What if the client pays in INR? Services are still considered exports if the INR payment is from a rupee account held by the foreign buyer in India (this is permitted by RBI under certain conditions). Confirm with your bank whether the specific INR payment qualifies as foreign exchange realization under FEMA.
We recommend using myBillPlease invoice generator for all export service invoices — it generates the correct format with LUT reference, foreign currency field, and the mandatory zero-rated supply declaration pre-filled.
myBillPlease supports export invoice format with LUT reference, foreign currency, HSN codes, and zero-rated supply declaration. Create your first export invoice in 2 minutes.
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