Is it an export of services if an Indian client pays me in US dollars?
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Short answer
No. Section 2(6) of the IGST Act needs all five conditions for an export of services, and condition (ii) is that the recipient is located outside India; payment in foreign currency is only condition (iv).1 Work for a client located in India is a domestic supply, so a GST-registered consultant or agency charges GST on it as on any other Indian invoice, whatever the currency.12
A UX researcher hired by a Bengaluru startup that holds a dollar account, or a video editor paid in dollars by an Indian YouTuber through a payment app, may assume that foreign currency makes the work an export. Under GST it does not.
Why does the client's location matter more than the currency?
The client's location matters more because section 2(6) of the IGST Act needs every one of its five conditions to hold.1 Condition (ii) requires the recipient of the service to be located outside India, and condition (iii) requires the place of supply to be outside India. Being paid in convertible foreign exchange is condition (iv). Meeting (iv) alone does not make a supply an export.1
| Condition | Indian client paying in dollars |
|---|---|
| (i) Supplier in India | Met |
| (ii) Recipient outside India | Not met |
| (iii) Place of supply outside India | Not met in the usual case |
| (iv) Convertible foreign exchange | Met |
| (v) Not establishments of the same person | Met |
The table applies the section 2(6) test to a client located in India.1
How is the client's location decided?
The client's location is decided by section 2(14) of the IGST Act. It is the place of business or fixed establishment where the service is received, or the client's usual place of residence if there is no such establishment.1 An Indian company with an Indian office receives your work in India, whichever currency it pays in.
The same applies to the Indian subsidiary of a foreign group. CBIC Circular No. 161/17/2021-GST explains that a company incorporated in India is a separate person from its foreign parent.3 Billing that Indian company is billing an Indian client, even when the parent abroad settles the invoice; see when an Indian client's foreign parent pays.
What do I charge?
If you are registered under GST, treat the invoice as a domestic supply and charge GST at the rate for your service, on the rupee value of the invoice. No Letter of Undertaking (LUT) applies, because the LUT is only for zero-rated supplies.2 If you are not registered, you charge no GST, but the income still counts towards your turnover.
Supplies to a unit in a Special Economic Zone (SEZ) are different again: they can be zero-rated under section 16(1)(b) even though the unit is in India.2 See GST on services supplied to an SEZ unit.
Where can I check a borderline client?
Use the export of services checker and the guide on what counts as export of services under GST and FEMA. For clients with offices in both India and abroad, see foreign clients with an Indian office, and confirm with a chartered accountant (CA) if the contract is unclear.
How did we verify this?
We checked this page against the sources below on 28 October 2026. Read our methodology or report an error.
Frequently asked questions
My client is the Indian subsidiary of a US company. Is billing it an export?+
No. The Indian subsidiary is a separate legal person located in India, as CBIC Circular 161/17/2021-GST explains, so the recipient is in India.13
Can I file an LUT for this invoice?+
No. An LUT covers zero-rated supplies, and a supply to a client in India is not an export. Supplies to an SEZ unit are a separate zero-rated category with their own rules.2
What if the Indian client is an individual who lives abroad most of the year?+
For a recipient with no business establishment, section 2(14)(d) of the IGST Act uses their usual place of residence. Where that is depends on the facts, so keep records of it.1
This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.
Keep reading
What counts as export of services under GST and under FEMA?
GST and FEMA define export of services differently. Compare IGST section 2(6) with FEMA section 2(l), and see when a service counts under one law but not the other.
GSTHow does GST apply to export of services from India?
How GST works when you bill a foreign client from India: the five export conditions, LUT vs IGST refund, records to keep, payment deadlines and mistakes.
GSTHow is the place of supply decided when you export services from India?
How IGST section 13 decides the place of supply when your client is abroad: the recipient-location rule, the exceptions that keep it in India, and 2026 changes.
GSTHow do you supply services to an SEZ unit without charging GST?
How an Indian service provider supplies to an SEZ unit or developer without GST: authorised operations, LUT, the rule 46 endorsement, and refund evidence under rule 89.