102 answers
Quick answers to specific questions
One question per page, answered in a few minutes, with every fact linked to its source.
GST 30
- Can I claim a GST refund on a laptop or camera I bought for export work?Not as a refund of unutilised credit on exports, under the rule as it stands.
- Can I file an LUT in the middle of the financial year?Yes.
- Can I file an LUT without GST registration?No.
- Can I stay in the GST composition scheme if I get one foreign client?No.
- I'm a consultant working on-site at my client's office in Singapore: is it still an export?Usually yes for GST: for a Singapore company, the place of supply is the client's location under section 13(2) of the IGST Act, and even under the physical-presence rule in section 13(3)(b) it is where the work is actually performed, which is Singapore.
- Do I charge GST as an architect designing a building located abroad?Usually not.
- Do I pay GST on foreign software subscriptions if I am a registered exporter?Usually yes, under reverse charge.
- Do I charge GST to a client in Dubai for a logo design?Usually not.
- Do I charge GST to foreign clients?Usually not.
- Do I charge GST for online tutoring of students who live abroad?Usually not.
- Does my Indian subsidiary charge GST when billing its foreign parent company?Usually not, if the other export conditions are met.
- My foreign client never paid an invoice I issued under an LUT. Do I owe GST?Possibly, yes.
- Is it an export if my foreign client also has an office in India?It depends on which establishment receives the service.
- What happens if I forgot to file an LUT and already issued export invoices?File the LUT for the year straight away, then deal with the invoices already issued.
- Do I need GST registration if I only have foreign clients and earn under ₹20 lakh?No.
- Do I charge GST when a foreign client books a photo or video shoot in India?Often yes, if you are registered.
- My Indian client's foreign parent is paying my invoice: is it an export?Usually not.
- I'm an Indian tutor teaching students in the UAE online: what applies?Live online classes for students who live in the UAE are usually an export of services: the place of supply is the student's location under section 13(2) of the IGST Act, so no GST is charged if all five export conditions are met.
- Do I charge GST on commission I earn from a foreign company in 2026?For supplies from 30 March 2026, often not.
- Is GST charged when a foreign client pays me through Upwork?Usually not.
- Is it an export of services if an Indian client pays me in US dollars?No.
- Is it still an export of services if my foreign client pays me in Indian rupees?Only if the rupee payment is one the Reserve Bank of India (RBI) permits.
- I'm organising a conference in Goa for a European company: is it an export?Not for GST.
- I run a virtual assistant team for Australian small businesses: what applies?Admin, inbox, scheduling and bookkeeping support delivered from India to businesses located in Australia is usually an export of services under section 2(6) of the IGST Act, with the place of supply at the client's location under section 13(2).
- I sell SaaS subscriptions to individuals abroad: what applies?Online software sold to consumers abroad is usually an export: section 13(12) of the IGST Act sets the place of supply of online information and database access or retrieval (OIDAR) services at the recipient's location, and a customer is deemed to be in India only if two non-contradictory signals, such as billing address and card country, point there.
- Should I export services under an LUT or pay IGST and claim a refund?Most service exporters use the Letter of Undertaking (LUT) route, because it lets a registered person invoice without IGST and claim a refund only of unutilised input tax credit, under section 16(3) of the IGST Act and rule 96A of the CGST Rules.
- I subcontract work to another Indian freelancer for a foreign project: who charges GST?The subcontractor's supply to you is a domestic supply, not an export, because you, the recipient, are located in India; if the subcontractor is GST-registered, it charges you GST under the place of supply rule in section 12 of the IGST Act.
- A US brand is sponsoring my YouTube video: what applies?A sponsorship signed directly with a brand located in the US, paid in foreign currency, can be an export of services because the place of supply is the recipient's location under section 13(2) of the IGST Act.
- I'm a voice-over artist recording for an Australian studio from India: what applies?Recording voice-overs in India for a studio located in Australia is usually an export of services: the place of supply is the studio's location under section 13(2) of the IGST Act, so no GST is charged if all five export conditions are met.
- What should I write on an export invoice to show that no GST is charged?A registered exporter under a Letter of Undertaking (LUT) must print the endorsement required by rule 46 of the CGST Rules: "SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX".
RBI and FEMA 17
- Can I offset what a foreign client owes me against what I owe them?Yes, with your bank's permission.
- Can I receive the advance and the balance payment in different banks?Yes, but only if you tell both banks.
- Can my client's parent company pay my export invoice?Usually yes, if your bank agrees.
- Can my foreign client pay part of the invoice?Yes, as long as the full invoice value is realised within the realisation period, which for services is nine months from the invoice date (twelve if invoiced or settled in rupees) under regulation 5 of the FEMA (Export and Import of Goods and Services) Regulations, 2026.
- My client cancelled after paying an advance. Can I refund it?Yes.
- My foreign client never paid. How do I close the invoice with my bank?Ask your Authorised Dealer bank to allow a reduction in export value "including non-realisation of full export value" under regulation 6 of the FEMA (Export and Import of Goods and Services) Regulations, 2026, citing your reasons.
- My foreign client paid after nine months. What now?Ask your Authorised Dealer bank to regularise the delay by extending the realisation period: the FEMA (Export and Import of Goods and Services) Regulations, 2026 require services to be paid within nine months of the invoice date (twelve for rupee invoices), and regulation 5 lets the bank extend that time if it is satisfied with your reasons.
- Do freelancers need to file an EDF for every invoice?No.
- Do I need an EDF for a small export invoice?Yes.
- Do I still need to file SOFTEX for software exports?No.
- Does invoicing in rupees give me twelve months to get paid?Yes.
- A Dubai client wants to pay me in USDT: can I accept it?Not as an export receipt, on the rules as written.
- Is a PayPal FIRA enough for my records?Not on its own.
- A UK client wants to pay me in rupees: is that allowed?Yes.
- My US client is paying a 50% advance before work starts: what applies?An advance from a foreign client is allowed, but it changes the paperwork: under FEMA the advance and the final payment must go through the same Authorised Dealer bank unless you inform both banks, and a registered supplier must issue a receipt voucher for the advance under section 31(3)(d) of the CGST Act.
- What happens if I miss the EDF deadline?Ask your bank for an extension: regulation 3(2)(c) of the FEMA (Export and Import of Goods and Services) Regulations, 2026 lets the Authorised Dealer bank extend the EDF deadline on your request citing reasons for the delay.
- When is the EDF due for a service invoice?The Export Declaration Form (EDF) for exported services is due within 30 days from the end of the month in which the invoice was raised, under regulation 3(2) of the FEMA (Export and Import of Goods and Services) Regulations, 2026.
Purpose codes 6
- My bank used a software purpose code for my consulting payment. What now?Ask your bank to amend the code to the one that matches your service, such as P1006 "Business and management consultancy and public relations services".
- My bank used P1099 instead of P0802. Does it matter?It can.
- Can I use one purpose code for all my export invoices?Only if all your invoices are for the same kind of service.
- My client payments came in under a personal purpose code. What now?Ask the bank that credited the payments to amend the code to the service you invoiced.
- Should I use P0802 or P0807 now that SOFTEX has ended?Ask your bank, because no RBI or DGFT document we found re-maps the two codes after SOFTEX was replaced by the Export Declaration Form on 1 October 2026.
- Which purpose code should I use for online tutoring income from abroad?The closest RBI code is usually P1107, "Educational services (e.g.
Tax 25
- Are forex gains on foreign client payments taxable?Yes.
- I'm an accountant doing bookkeeping for US small businesses: what applies?Bookkeeping delivered from India to businesses located in the US is usually an export of services: the place of supply is the client's location under section 13(2) of the IGST Act, so no GST is charged under a Letter of Undertaking.
- Can a freelancer switch between the old and new tax regime every year?No.
- Can a graphic designer use presumptive tax under section 58?Not automatically.
- Can a software developer pay tax on 6% under section 58?Usually not.
- Can a video editor use presumptive tax under section 58?It depends on the work.
- Can an LLP or private limited company use presumptive tax under section 58?No.
- Can I claim foreign tax credit if I use presumptive tax?Yes.
- Can I switch from presumptive tax to actual profit next year?For professionals on section 58(2), Table row 3 (the old 44ADA), yes: the Income-tax Act, 2025 has no lock-in for row 3, though declaring profit below 50% with income above the exemption limit means books and a tax audit under section 58(3).
- Do freelancers need to keep books of account?Often yes.
- Do I have to file an ITR if I hold a foreign account?Yes, if you are resident and ordinarily resident.
- Do I need a CA to verify Form 44?Only in two cases.
- Do I need a tax audit if my receipts cross ₹75 lakh?For a professional, usually yes.
- Do I pay advance tax on foreign freelance income?Yes, if your tax for the year is ₹10,000 or more: section 404 of the Income-tax Act, 2025 makes advance tax payable on all income, including fees from foreign clients.
- Do I pay Indian tax on freelance income while living abroad?It depends on your residence for the tax year.
- I work full time from India as a contractor for a US company: what applies?A contractor who invoices a US company from India is an exporter of services, not an employee, for Indian purposes: once aggregate turnover passes ₹20 lakh you register for GST and invoice under a Letter of Undertaking, and every monthly invoice needs an Export Declaration Form and realisation within nine months.
- I'm a lawyer in India doing document review for a US law firm: what applies?Remote document review, contract abstraction or legal research for a law firm located in the US is usually an export of services, because the place of supply is the recipient's location under section 13(2) of the IGST Act.
- Is foreign income taxable if I keep it abroad?Yes, for a resident of India.
- Is freelance income up to ₹12 lakh tax-free in tax year 2026-27?Effectively yes under the new regime, if your total income (not your gross receipts) is ₹12 lakh or less.
- What is the ITR due date for freelancers for tax year 2026-27?For income earned from 1 April 2026 to 31 March 2027, a freelancer with business or professional income whose accounts do not need an audit files by 31 August 2027, under section 263(1)(c) of the Income-tax Act, 2025.
- I moved abroad mid-year: how is my freelance income taxed?It depends on your residential status for the tax year, which section 6 of the Income-tax Act, 2025 decides mainly by days in India: 182 days or more makes you resident, and a second test of 60 days plus 365 days in the four preceding years can also apply.
- My US client withheld 30%: can I get it back?Often yes, but from the US side, not from India.
- I'm a salaried employee with a side gig for a foreign client: what applies?Your salary and your side income are treated separately.
- What if I miss the 15 March advance tax deadline?You pay interest, but the cost depends on how late you are.
- Which exchange rate do I use to report foreign income?For fees received in India during the year, the usual starting point is the rupees actually credited, because rule 206(3) of the Income-tax Rules, 2026 switches off the prescribed conversion rate for business or professional income brought into India before the last day of the tax year.
Payments 21
- Can a client pay me by credit card from abroad?Yes.
- Can a US client pay me by ACH?Only if you give the client US bank account details.
- Can I keep USD in India instead of converting it to rupees?Yes.
- Can I receive export payments in a savings account?The FEMA (Export and Import of Goods and Services) Regulations, 2026 do not name the type of account into which export proceeds for services must go; they require the Authorised Dealer bank to satisfy itself the transaction is genuine before crediting it.
- Do I get a FIRA from Wise?Wise says it issues an e-FIRC (foreign inward remittance certificate) for each transfer it sends to your Indian bank account, emailed within 3 working days and downloadable from the transfer page on the Wise website.
- Do I need an IEC to receive export payments for services?Not under the Foreign Trade Policy as such.
- Does my bank owe me interest if it delays crediting a foreign payment?Yes, in defined cases.
- Does Payoneer give a FIRA in India?Yes.
- Does Stripe give a FIRC in India?Not directly.
- How do I check if a payment platform is RBI authorised?Find the platform's Indian company name, then search for it in the payment aggregator section of RBI's list of Certificates of Authorisation under the Payment and Settlement Systems Act, 2007; for receiving export payments, the category should read PA-CB-I or PA-CB-I & O.
- How long does a SWIFT payment from the US to India take?There is no single published time: a SWIFT wire from the US passes through the client's bank, one or more correspondent banks and your Indian bank, and each adds its own step.
- Is it legal to receive export payments through PayPal?PayPal's India user agreement says it facilitates cross-border export transactions as an online payment gateway service provider under RBI A.P.
- Is income received through PayPal treated as export of services?Yes, if the underlying work meets the conditions for export of services.
- Is there a limit on export payments through a payment aggregator?Yes.
- My client says they paid, but the money has not arrived. What do I do?Ask the client for their bank's payment confirmation with the tracking reference, then ask your bank's foreign exchange desk whether the funds have reached its nostro account and what it is waiting for.
- What details do I give a US client to pay me?For a wire from the US, give your name, address and account number, your Indian bank's name, branch and SWIFT code, your bank's US dollar correspondent bank and its nostro account details, and a purpose of payment for the remittance information field.
- What happens if an international payment to India is returned?A returned payment goes back to your client, usually minus return charges, and your invoice stays unpaid.
- Which exchange rate does my bank use for a foreign payment?Your bank converts a foreign inward remittance at its TT buying rate, or at a rate you have contracted with it in advance, under Rule 4.4 of the rules of the Foreign Exchange Dealers' Association of India (FEDAI).
- Why did I receive less than my client sent?A foreign payment usually arrives short because banks in the SWIFT chain deducted their fees from it: under the SHA charge option, intermediary banks take their charges from the amount sent.
- Why did my bank ask for an invoice for a foreign payment?Your bank asks for the invoice because RBI's 2026 export regulations let it credit an export receipt only after satisfying itself the transaction is genuine, and require it to mark off the export in the Export Data Processing and Monitoring System (EDPMS) once the value is realised.
- Why is GST deducted when I receive a foreign payment?The GST is on your bank's currency conversion service, not on your export.
Invoicing 1
Setup 2
- We're an LLP marketing agency billing a client in Singapore: what applies?An LLP that delivers marketing services from India to a company located in Singapore is usually exporting services: the place of supply is the client's location under section 13(2) of the IGST Act, and a registered LLP invoices without IGST under a Letter of Undertaking.
- I'm a student freelancing for a US startup: what do I need to do?A student in India who bills a US startup is an exporter of services like any other freelancer: GST registration is not needed until aggregate turnover crosses ₹20 lakh, but the payment must come through an authorised bank or provider and be realised within nine months of the invoice date.
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