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When you provide services to a foreign client and receive payment in foreign currency, it's an export of service. Zero GST applies, but only if you've filed a Letter of Undertaking (LUT) with the GST department.
Digital economy · Global Freelancing
LUT filing: how to export services with 0% GST
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Provisions
CGST Act, Sec 16(3)(a) | Rule 96A | LUT Form RFD-11
Analysis
Without LUT: You collect 18% GST on the invoice, deposit it, then claim a refund. Refunds take 30-90 days. Cash flow nightmare. With LUT: Issue invoice at 0% GST. Receive USD from client. Convert to INR. No GST to deposit, no refund to claim. Clean. Filing LUT: Annual. File on GST portal → Services → User Services → Furnish LUT. No fee. No stamp. Takes 5 minutes. Valid for the entire financial year. Conditions for export of service: Place of supply = outside India. Payment received in convertible foreign exchange. Customer is outside India.
Close
- Login to GST portal → Services → User Services → Furnish LUT
- Select FY for which LUT is being filed
- Fill in details, submit with DSC or EVC
- Download the LUT acknowledgement, keep for 7 years
- Mention LUT reference number on all export invoices: "Supply under LUT, GSTIN/[your GSTIN]/[LUT ARN]"
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