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What should you do before and after your first payment from a foreign client?

Author:: Editorial team, serviceexportguide.com
Verified by:: Editorial team
Published: 28 October 2026
Last modified: 30 October 2026
Reading time: 7 min read

Short answer

A GST-registered exporter files an LUT before invoicing without integrated tax.⁶¹⁰ The export invoice carries the rule 46 particulars.² The bank needs a five-character purpose code.³ From 1 October 2026, every service exporter files an EDF within 30 days from the end of the invoice month.⁴ Payment must be realised within nine months of the invoice date.⁵

Step	Applies to	Governed by	Deadline	Penalty	Last verified
GST registration	Exporters above ₹20 lakh aggregate turnover (₹10 lakh in special category States)¹	Notification No. 10/2017-Integrated Tax¹	Not applicable	Not covered on this page	28 October 2026
LUT (FORM GST RFD-11)	GST-registered exporters	CGST Rules, 2017, rule 96A¹⁰	Before the export, for each financial year⁶	Integrated tax with interest if payment is late under rule 96A¹⁰	28 October 2026
Export invoice	GST-registered exporters	CGST Rules, 2017, rule 46²	Not applicable	Not covered on this page	28 October 2026
Export Declaration Form (EDF)	Every exporter of services from 1 October 2026⁴	FEMA (Export and Import of Goods and Services) Regulations, 2026⁴	30 days from the end of the invoice month⁴	Not covered on this page	28 October 2026
Realisation	Every exporter of services	Regulation 5, as amended on 22 September 2026⁵	Nine months from the invoice date; twelve if invoiced or settled in rupees⁵	Not covered on this page	28 October 2026

Your first payment from a foreign client sets up habits you will keep. Doing the paperwork once, in the right order, means your bank credits come through cleanly, your GST and income tax records match, and you have the documents you need later. This checklist suits any first-time exporter: a translator paid by a German agency, an illustrator commissioned by a US publisher, or a consultant advising a client in Dubai.

Rules are as of October 2026, after the FEMA (Export and Import of Goods and Services) Regulations, 2026 took effect on 1 October 2026.⁴

What does the first international client payment checklist cover?

The first international client payment checklist covers what an Indian service exporter does from accepting foreign work to filing the Export Declaration Form (EDF) and keeping records. It has three stages:

Before the work: confirm the work is an export, check GST registration, and agree payment terms and the payment route.
Before the invoice: file a Letter of Undertaking (LUT) if registered, and prepare bank details, client tax forms and platform KYC.
After the payment: give the purpose code, collect the Foreign Inward Remittance Advice (FIRA), file the EDF and record the income.

Each stage is set out as numbered steps below.

Who does the first international client payment checklist apply to?

The first international client payment checklist applies to any person in India billing a foreign client for services, with GST steps that depend on registration. An export of services needs a supplier in India, a recipient outside India, a place of supply outside India, payment in convertible foreign exchange (or rupees where RBI permits), and supplier and recipient not merely establishments of the same person.⁹

Entity type	Applicable	Why	Best for
Unregistered freelancer	Yes, without LUT or GST invoice fields	Exempt from registration up to ₹20 lakh aggregate turnover (₹10 lakh in special category States)¹	Freelancers with a small first foreign contract
GST-registered freelancer or sole proprietor	Yes, all steps	LUT in FORM GST RFD-11 and rule 46 invoice particulars apply²⁶	Freelancers already registered or above the limit
Company or LLP	Yes, all steps	Gives a US payer Form W-8BEN-E instead of W-8BEN⁷	Agencies and firms billing foreign clients

Use the export of services checker if you are unsure the work qualifies.

How do you get paid by your first international client from India?

You get paid by your first international client by confirming the work is an export, setting up GST and bank details, invoicing correctly, and then completing the bank and EDF steps once the money arrives.

Confirm the export: check the five conditions of section 2(6) of the IGST Act.⁹
Check GST registration: a supplier making only inter-State supplies of taxable services with aggregate turnover up to ₹20 lakh (₹10 lakh in special category States) is exempt from registration, and export turnover counts.¹ See GST registration for freelancers who export.
Agree payment terms and route: agree the amount, currency, due date and who pays bank charges, and whether the client pays by bank wire, a collection account, a card through a payment aggregator, or a marketplace. See export payment terms and how to receive international payments in India.
File an LUT if registered: file a Letter of Undertaking in FORM GST RFD-11 on the GST portal for the financial year before the export.⁶¹⁰ It lets you invoice without integrated tax. See how to file an LUT.
Prepare details and forms: share bank details exactly as your bank holds them, including the SWIFT code (bank details for international payments). A US payer commonly asks a non-US individual for Form W-8BEN (W-8BEN for Indian freelancers).⁷ Finish KYC for any payment platform you will use.
Issue the invoice: a registered exporter's invoice carries the rule 46 particulars, including GSTIN, a unique serial number, the client's name and address, the country of destination and the export endorsement.² An unregistered freelancer issues a plain invoice without GST fields. See the international invoice template or the export invoice generator.
Give the purpose code and documents: give the five-character code (P plus four digits) that matches your service, under RBI's FETERS framework.³ The bank may ask for the invoice or contract, so send the invoice that matches the amount. See purpose codes for freelancers or the purpose code finder.
Check the credit and collect the FIRA: compare the amount credited with the invoice, note any deductions, and download or request the FIRA or equivalent. See FIRA for freelancers.
File the EDF and record the income: give the EDF to your authorised dealer (AD) bank within 30 days from the end of the invoice month,⁴ then record the invoice in your GST return if registered, and in your books for income tax.

When the money reaches India, your bank or payment provider converts it and credits your account, after satisfying itself that the transaction is genuine under regulation 4 of the 2026 Regulations.⁴ Expect questions on the first payment.

What documents and records apply to a first international client payment?

A first international client payment needs the export invoice, the LUT acknowledgement if registered, the FIRA, the bank's credit advice and the EDF acknowledgement.²⁴⁶ Keep each of these for every foreign payment.

Document	What it shows	Rule or source	Best for
Contract or engagement email	Scope, amount and payment terms	Not applicable	Answering bank questions on the payer
Export invoice	Rule 46 particulars and LUT endorsement²	CGST Rules, rule 46²	GST records and bank queries
FIRA or remittance advice	The inward remittance and purpose	Bank or payment provider	Proving foreign receipt
Bank credit advice	The rate applied and amount credited	Bank	Income tax books
EDF acknowledgement	The export declaration	2026 Regulations⁴	FEMA compliance
e-BRC, if needed	Realisation, self-generated on the DGFT portal⁸	DGFT Trade Notice 33/2023-24⁸	GST refunds or export benefits

The LUT endorsement on the invoice reads "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".² These documents answer most later questions from the bank, the GST department or the income tax department. See FIRC, FIRA and e-BRC.

What happens if you get the first international client payment wrong?

If you invoiced under an LUT and payment does not arrive in time, integrated tax becomes payable with interest under rule 96A of the CGST Rules.¹⁰ Other gaps usually show up as questions from the bank.

Late payment under LUT: payment must arrive within one year, or within the period allowed under FEMA including any RBI-permitted extension if that is later, failing which integrated tax is payable with interest.¹⁰
Bank checks: the bank satisfies itself that the transaction is genuine under regulation 4 of the 2026 Regulations, so a missing invoice or unclear payer can delay the credit.⁴
Short or third-party payments: if the bank asks why the money is short or from a different payer, see why banks ask for invoices on inward remittances.

Getting the first payment right makes later ones routine.

What is the timeline for a first international client payment?

The timeline for a first international client payment starts at the invoice date: the EDF is due within 30 days from the end of the invoice month, and the export value must be realised within nine months.⁴⁵

Event	Deadline	Rule
LUT	Before the export, for the financial year⁶	FORM GST RFD-11⁶
EDF	Within 30 days from the end of the invoice month; non-software exporters may file on or before the payment date⁴	2026 Regulations⁴
Realisation	Nine months from the invoice date, or twelve months if invoiced or settled in rupees, from 1 October 2026⁵	Regulation 5⁵
Payment under LUT	One year, or the FEMA period with any RBI extension if later¹⁰	Rule 96A¹⁰

From 1 October 2026, every exporter of services gives the EDF to its AD bank.⁴ Ask your bank how it wants the EDF submitted, especially if you were paid through a platform. See EDF for service exporters and export realisation period.

What are the common mistakes with a first international client payment?

The common mistakes with a first international client payment are skipping the LUT, sending an invoice that does not match the amount, and giving a purpose code that does not match the service.²³⁶

No LUT before invoicing: a registered exporter files the LUT for the financial year before the export.⁶
Invoice mismatch: the bank may ask for the invoice, so it should match the amount received.
Wrong purpose code: the code should match the service, under RBI's FETERS framework.³
Missing EDF: from 1 October 2026 the EDF applies to every service exporter, including non-software exporters.⁴
Bank details typed differently: share them exactly as your bank holds them, including the SWIFT code.

For example, say a translator in Pune is paid by a German agency: the translator files the LUT (if registered), invoices with the endorsement, gives the purpose code, saves the FIRA and files the EDF within 30 days from the end of the invoice month.²⁴⁶

For the broader set-up beyond the first payment, see the first-time exporter checklist. For anything specific to your situation, check with a chartered accountant.

How did we verify this?

We checked this page against the sources below on 30 October 2026. Read our methodology or report an error.

Frequently asked questions

Do I need GST registration before my first foreign payment?+

GST registration is not always needed before a first foreign payment. A supplier making only inter-State supplies of taxable services with aggregate turnover up to ₹20 lakh (₹10 lakh in special category States) is exempt under Notification 10/2017-Integrated Tax, and export turnover counts in aggregate turnover.¹ Check where your total turnover stands before you invoice.

Do I need an IEC to receive payment for services?+

This first-payment checklist does not depend on an Importer Exporter Code (IEC). Whether a service exporter needs an IEC depends on the exporter's situation and on any export benefits being claimed. The IEC guide for freelancers explains the cases, and a chartered accountant can confirm whether your own situation needs one.

What is a purpose code and who gives it?+

A purpose code is a five-character code, "P" plus four digits, that tells the bank why money is coming into India, under RBI's FETERS framework.³ The exporter gives the purpose code to the bank or payment provider when the payment arrives, and the code should match the service that was invoiced.

What is the deadline to file the EDF for my first invoice?+

From 1 October 2026, the Export Declaration Form for a first invoice is due within 30 days from the end of the month in which the invoice was raised. Exporters of non-software services may instead file the EDF on or before the date the payment is received.⁴ Ask your AD bank how it wants it submitted.

What should a US client ask me for before paying?+

A US client commonly asks an Indian freelancer for Form W-8BEN, which a non-US individual gives to the payer to document foreign status.⁷ An Indian company or LLP gives Form W-8BEN-E instead.⁷ The form goes to the client, not to the IRS, and the client keeps it with its own payment records.

Can an unregistered freelancer invoice a foreign client?+

An unregistered freelancer can invoice a foreign client with a plain invoice that has no GST fields. The rule 46 particulars, such as GSTIN and the export endorsement, apply to a registered exporter.² Registration is not needed while aggregate turnover stays within the exemption limit in Notification 10/2017-Integrated Tax.¹

Is an e-BRC needed for every foreign payment?+

An electronic Bank Realisation Certificate (e-BRC) is needed only for some purposes, for example a GST refund or export benefits. Where an exporter needs one, the e-BRC is now self-generated on the DGFT portal from the bank's data under Trade Notice 33/2023-24.⁸ Many freelancers rely on the FIRA and bank credit advice instead.

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.

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