A UK client wants to pay me in rupees: is that allowed?
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Short answer
Yes. For clients in countries outside the Asian Clearing Union, including the UK, RBI's receipt regulations allow export proceeds in Indian rupees or any foreign currency, provided the money comes through an authorised bank or authorised person.1 A rupee invoice or settlement gets twelve months from the invoice date for realisation instead of nine.23 For GST, rupee payment counts only where RBI permits it, so the rupees must come from a proper non-resident rupee route, not from someone's domestic account.4
Some clients prefer to pay in rupees: a London agency that already holds rupees, or a client who wants you to carry the conversion. For a freelance translator, designer or developer in India, a rupee invoice to a UK client is permitted, but how the rupees reach you decides whether it is a clean export.
Does RBI allow a UK client to pay in rupees?
Yes. Regulation 3 of the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023 allows export receipts from countries other than Nepal, Bhutan and the other Asian Clearing Union members in Indian rupees or any foreign currency.1 The receipt must be made through an authorised bank or authorised person.1 The UK falls in the "all other countries" group.
How do the rupees actually reach me?
A UK client cannot simply send rupees from an ordinary sterling account. The rupees have to come through an authorised bank or authorised person.1 In practice that usually means a rupee account in India held for the client's bank, such as a Special Rupee Vostro Account (SRVA). Ask the client which bank it uses and whether that bank offers rupee settlement. The Special Rupee Vostro Account guide explains the mechanism.
Does the realisation period change?
Yes. From 1 October 2026, regulation 5 of the FEMA (Export and Import of Goods and Services) Regulations, 2026 gives nine months from the invoice date for services, but twelve months where the export is invoiced or settled in Indian rupees.23 You still file an Export Declaration Form (EDF) with your bank within 30 days from the end of the invoice month, or for non-software services on or before the payment date.2 See export invoicing in INR.
Is it still an export for GST?
It can be. Condition (iv) of section 2(6) of the IGST Act accepts payment "in Indian rupees wherever permitted by the Reserve Bank of India".4 A rupee receipt routed as RBI's rules allow can satisfy it. Rupees paid by a friend of the client from a domestic Indian account probably would not. If you are GST-registered, invoice under your Letter of Undertaking with the rule 46 endorsement as usual.5
What about income tax and exchange risk?
Income tax works as for any foreign fee: the rupee amount is your professional or business income. The difference is that the client bears the currency movement, because your amount is fixed in rupees. If the route the client proposes is unusual, confirm it with your bank and a chartered accountant before you issue the invoice.
How did we verify this?
We checked this page against the sources below on 28 October 2026. Read our methodology or report an error.
- [1]RBI: Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, Notification No. FEMA 14(R)/2023-RB, as amended (regulation 3)
- [2]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB, amended up to 22 September 2026 (regulations 3 and 5)
- [3]RBI: Notification No. FEMA 23(R)/(1)/2026-RB dated 22 September 2026 (amendment to regulation 5)
- [4]CBIC: IGST Act, 2017, section 2 (definitions), clause (6)
- [5]CGST Rules, 2017 (consolidated as of 24 September 2021), rule 46 (tax invoice contents and export endorsement), CBIC
Frequently asked questions
Can my UK client just transfer rupees from a UK bank account?+
Only if the client's bank can deliver rupees through the banking channel, for example from a rupee account in India held for it. The receipt must come through an authorised bank or authorised person.1
How long do I have to collect a rupee invoice?+
Twelve months from the invoice date where the export is invoiced or settled in rupees, under regulation 5 as amended from 1 October 2026.23
Do I still file an EDF for a rupee invoice?+
Yes. The 2026 Regulations require every service exporter to file an Export Declaration Form, whatever the invoice currency.2
Does a rupee invoice still need the LUT endorsement?+
If you are registered and export under a Letter of Undertaking, rule 46 requires the export endorsement on the invoice regardless of currency.5
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
Can an Indian exporter invoice a foreign client in Indian rupees?
Can an Indian service exporter invoice a foreign client in rupees? RBI and FEMA rules on INR invoicing and settlement, the 12-month realisation period and GST.
RBI and FEMAWhat is a Special Rupee Vostro Account and how does it pay Indian exporters?
What a Special Rupee Vostro Account is, how Indian service exporters get paid in rupees through one, and what RBI's July 2026 consolidated circular changed.
RBI and FEMAHow long does a service exporter have to realise export proceeds?
How long Indian service exporters have to get paid by foreign clients under FEMA from 1 October 2026, how extensions work and what happens if you miss it.
InvoicingHow do you raise an invoice in foreign currency from India?
Step by step: billing a foreign client in USD, EUR or GBP from India, with GST rule 46 details, the LUT endorsement, rupee conversion and 2026 FEMA timelines.