How to Issue an Export Invoice under GST with LUT

Is GST applicable on Exports?

Under GST law, export of goods and services is considered a "zero-rated supply." This means you don't have to pay tax on the final output, and you can also claim Input Tax Credit on your expenses.

Option 1: Export under LUT (Letter of Undertaking)

Most service exporters (Freelancers, Agencies) choose this option. You file a simple LUT form on the GST Portal at the start of every financial year.

• No IGST is charged on the invoice.
• The invoice must mention: "Supply Meant For Export Under Bond Or Letter Of Undertaking Without Payment Of Integrated Tax."

Option 2: Export with Payment of IGST

You charge IGST on the invoice and later claim a refund from the government. This is less common for service providers as it blocks working capital.

Mandatory Invoice Fields for Export

• Recipient's full international address.
• Currency of transaction (e.g., USD, EUR).
• Foreign Inward Remittance Certificate (FIRC) details (post-payment).