Export Invoice Format India — LUT, Zero-Rated GST & IGST Refund Guide 2026
Exporting goods or services from India? You have two options under GST — export under LUT (zero-rated, no IGST charged) or export with IGST and claim a refund. This guide explains which option to choose, how to format your export invoice, and how to claim your IGST refund.
Exports from India are 'zero-rated' under GST — meaning they attract 0% GST. However, the mechanism for this is more nuanced than simply writing '0% GST' on your invoice. Indian exporters (of goods and services) have two legal options for handling GST on exports, and getting this wrong can result in IGST liabilities, blocked refunds, or customs clearance issues.
Two Options for GST on Exports
| Option | How It Works | Best For |
|---|---|---|
| Export Under LUT (Recommended) | File a Letter of Undertaking; export without paying IGST; claim ITC refund on inputs | Regular exporters, IT services exporters, most businesses |
| Export With Payment of IGST | Charge IGST on the export invoice; the buyer abroad effectively pays 0 (IGST is refunded); you claim IGST refund later | Occasional exporters, businesses with no input ITC to utilise |
What Is an LUT (Letter of Undertaking)?
An LUT is a declaration filed by the exporter on the GST portal, undertaking that export proceeds will be realised within 12 months and export will happen within 3 months (for goods) or 12 months (for services) of issuing the invoice. Once an LUT is accepted, you can export without paying IGST — and claim a refund of ITC accumulated on inputs used for the export.
How to file an LUT
Log in to the GST portal → Services → User Services → Furnish Letter of Undertaking (LUT). It takes about 10 minutes. An LUT is valid for one financial year — re-file at the start of each April. There is no fee to file an LUT.
Export Invoice Format Under GST
An export invoice must contain all regular GST invoice fields plus the following additional fields:
- Mention on the invoice: 'Supply meant for export under LUT/Bond without payment of IGST' (if LUT filed) OR 'Supply meant for export with payment of IGST' (if paying IGST)
- Name and address of the buyer in the foreign country
- Delivery address in the foreign country
- Country of destination
- Currency and exchange rate (for foreign currency invoices)
- Port of loading / Shipping Bill number (for goods exports)
- LUT/Bond reference number and date (if exporting under LUT)
- Total invoice value in both foreign currency and INR
GST on Export of Services — What Qualifies?
A supply of service qualifies as export (and hence zero-rated) under GST if all 5 conditions are met:
- 1The supplier is located in India
- 2The recipient is located outside India
- 3The place of supply is outside India
- 4Payment is received in convertible foreign exchange (or Indian Rupees in specific cases)
- 5The supplier and recipient are not merely establishments of the same entity
IT companies, software developers, designers, consultants, and content writers billing foreign clients typically qualify for zero-rated export. File your invoices under LUT to avoid IGST and claim ITC refunds on your input expenses (internet, equipment, office rent, etc.).
How to Claim IGST Refund on Exports
- 1For goods exports: IGST paid is automatically matched with the shipping bill and refunded within 2–3 weeks through ICEGATE (customs). No separate refund application needed.
- 2For services exports or LUT-based exports: File a refund application in RFD-01 on the GST portal. The competent GST officer processes the refund within 60 days. Most ITC refunds for IT service exporters are processed within 30–45 days.
Create GST Export Invoices Free
Ozydo supports export invoice fields — foreign currency, LUT reference, and zero-rated GST.
Try Free →Frequently Asked Questions
Do I need to register for GST to export services?
Yes. To export services as a zero-rated supply and claim LUT benefits, you must be GST-registered. Businesses below the ₹20 lakh threshold can voluntarily register to avail export benefits — especially useful if you have significant input costs you want to recover through ITC refunds.
Can I invoice in US Dollars and receive payment in USD?
Yes. You must invoice in the foreign currency and receive payment in foreign exchange (wire transfer, PayPal, Wise, Stripe in some cases). The invoice should show the USD amount and the INR equivalent at the RBI reference rate on the invoice date. Payment must be realised within 12 months under the LUT.
What is Form 16A relevance to export invoices?
Form 16A is a TDS certificate — it is not related to export invoices. Export clients (being foreign entities) do not deduct Indian TDS. However, if you receive payment via certain payment aggregators, there may be TDS implications — consult your CA.
Does Ozydo support export invoices with foreign currency?
Yes. You can set your invoice currency to USD, EUR, GBP, AED, or other currencies in Ozydo. The invoice PDF will show amounts in the selected currency. For LUT reference number fields, use the Notes section of the invoice.
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Written by the Ozydo Team
Ozydo is India's simplest free GST invoice app for small businesses and freelancers. We write practical guides on invoicing, GST, and business finance to help you get paid faster.
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