LUT, zero-rating, and FEMA compliance in one guide.
GST — Export of Services
GST Export of Services — LUT Filing and Zero-Rating for Indian Freelancers
Services exported to overseas clients qualify as zero-rated supplies under Section 16(1) of the IGST Act, 2017 — meaning 0% GST with no refund required when a Letter of Undertaking (LUT) is in place. We file your LUT, advise on invoice format and ensure your export-of-services treatment is watertight.
What's Included
Eligibility assessment — export of services vs. mixed supply
LUT filing on the GST portal (Form RFD-11) annually before the first export invoice
Invoice format review — USD/GBP/EUR invoice with GSTIN and LUT reference
Place-of-supply analysis under Section 13 IGST — recipient outside India, FEMA receipt condition
GSTR-1 and GSTR-3B treatment for zero-rated supplies
AD-bank coordination for FIRC/FIRA as proof of export realisation
Refund application under Section 54 CGST if LUT lapses or refund route preferred
Our Process
STEP 1
Eligibility Check
Place of supply, recipient country and FEMA receipt validated.
Day 1
STEP 2
LUT Filing
Form RFD-11 filed on the GST portal.
Day 1
STEP 3
Invoice Review
USD/GBP/EUR template with GSTIN and LUT reference.
Day 1
STEP 4
GSTR Reporting
Zero-rated supplies reported correctly in GSTR-1 and GSTR-3B.
Monthly
STEP 5
Annual Renewal
LUT renewed every FY and compliance reviewed.
Yearly (April)
Documents Required
- PAN and GSTIN
- Previous year's Income Tax Return (ITR)
- Bank statement showing inward foreign remittance
- Sample client contract or service agreement
- FIRC / FIRA copies (if available)
- Authorised signatory KYC and digital signature (DSC)
Key Statutory References
| Item | Reference |
|---|---|
| Zero-Rated Supply | Section 16(1), IGST Act 2017 |
| LUT Mechanism | Rule 96A, CGST Rules 2017 — Form RFD-11 |
| Refund Route | Section 54, CGST Act 2017 |
| Place of Supply (Services) | Section 13, IGST Act 2017 |
| FEMA Receipt Condition | FEMA 1999 — service export realisation in convertible FX |
| Penalty for Non-LUT Export | IGST paid + interest under Section 50, CGST Act |
Frequently Asked Questions
Related Services
Guides & Resources
Step-by-step GST registration for service exporters.
FEMA rules for receiving foreign remittances.
File your LUT and bill foreign clients at 0% GST
Book a free 15-minute advisory call with Regi Tom Antony.