Guide for Service Exporters
Menu
GST

The GST and LUT Rules Behind Every International Invoice from India

Author:
Editorial team, serviceexportguide.com
Verified by:
Editorial team
Published
Last modified
Fees checked on
Reading time
7 min read

Short answer

An invoice to a foreign client is an export of services only if all five section 2(6) IGST Act conditions hold.1 Exports are zero-rated under section 16.2 An LUT in FORM GST RFD-11 lets registered suppliers invoice without IGST.3 In 2026, payment is due within nine months of the invoice date.45

Applies toRules involvedPlatforms comparedLast verified
GST-registered suppliers in India billing clients outside India13IGST Act sections 2(6), 13 and 16; CGST rules 46, 47 and 96A; FEMA 2026 Regulations, regulation 5162784Skydo, Razorpay, Karbon Business: lowest published cost on a USD 5,000 receipt9101131 October 2026

Every invoice an Indian freelancer, agency or software company sends abroad sits on two sets of rules: the Goods and Services Tax (GST) rules that decide whether the invoice is a zero-rated export, and the Reserve Bank of India (RBI) rules that decide how long you have to get paid. This page sets out both, then compares what the payment routes cost. Confirm facts specific to your business with a chartered accountant.

How do Skydo, Razorpay and Karbon Business compare for getting an international invoice paid?

Skydo, Razorpay and Karbon Business have the lowest estimated cost on published fees for a USD 5,000 receipt, and they differ on fee structure, settlement time and RBI status.91011 The invoice topic names no platform, so the table lists these three, ordered by estimated cost on published fees, cheapest first.

PlatformBest forFeeFX markupSettlementFIRARBI PA-CB statusSource
SkydoLocal bank transfers from major markets15USD 19 plus GST up to USD 2,000; USD 29 plus GST from USD 2,001 to USD 10,000; 0.3% plus GST above USD 10,00090% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)1627Within 24 hours (product page); T+1 to T+3 business days (terms)1627Free FIRA on every payment16PA-CB inward and outward, authorised 8 January 202617Skydo fees FAQ and product page916
RazorpayLocal transfers from the US, UK and eurozone181% per transaction plus GST on MoneySaver bank transfers, with a flat fee on small transactions100% on MoneySaver bank transfers10T+1 for bank transfers18Foreign Inward Remittance Statement (FIRS) within 24 hours of settlement18PA-CB inward and outward17Razorpay docs and pricing1810
Karbon BusinessUS bank transfers and marketplace payouts191% transaction fee, per Karbon's PayPal comparison page110% per the freelancer page; 0.5% to 1.0% per the comparison page191124 to 48 hours19FIRA for every transaction from a banking partner19Not on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB2017Karbon pages and terms1920

Which route suits you depends on how your client pays; the payment route does not change the GST treatment of the invoice.1

Which GST rules decide whether an international invoice is an export?

An international invoice is an export of services only when all five conditions in section 2(6) of the IGST Act hold at once.1 If any condition fails, the invoice is a taxable domestic supply.

  • Supplier in India: You, the supplier, are located in India.1
  • Recipient outside India: The client is located outside India.1
  • Place of supply outside India: The default place of supply, when the supplier or recipient is outside India, is the location of the recipient under section 13(2), with special rules in section 13(3) to 13(13).6
  • Payment in foreign exchange: Payment is received in convertible foreign exchange, or in rupees where RBI permits.1
  • Not a distinct establishment: Supplier and recipient are not merely establishments of a distinct person.1

When all five hold, the supply is zero-rated under section 16, and since 1 October 2023 the LUT route under section 16(3) supplies without IGST with a refund of unused input tax credit.2 See place of supply for export of services for the special cases.

Which RBI rule governs money paid against an international invoice?

The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (the 2026 Regulations), in force from 1 October 2026, govern the money that settles an export invoice.4 The table lists the rules that touch each invoice.

RuleBest forPlain meaningSource
Regulation 5, 2026 RegulationsEvery services exporterRealise the invoice within nine months of its date; twelve months if invoiced or settled in rupees45RBI45
Regulations 3 and 4, 2026 RegulationsEvery services exporterFile an Export Declaration Form (EDF) with the AD bank within 30 days from the end of the invoice month; non-software exporters may file on or before the payment date4RBI4
Circular No. 20, 16 January 2026Software exportersThe EDF covers software exports and the circular supersedes the earlier SOFTEX circulars from 1 October 202621RBI21
Master Direction on Payment Aggregators, para 11(d)Exporters paid through a PA-CBEach cross-border payment aggregator transaction is capped at ₹25 lakh22RBI22

The realisation clock links back to GST, because rule 96A uses the FEMA period when deciding whether IGST falls due on an LUT invoice.8 The export realisation deadline calculator works out your date.

What does each option charge to collect an international invoice?

Each option charges in a different way: the three platforms publish a flat or percentage fee, and a bank wire is priced in your bank's own published policy.910114 The 2026 Regulations require banks to publish a policy listing documents, timelines and charges on their websites.4

OptionBest forPublished chargeSource
SkydoLocal bank transfers from major markets15USD 29 plus GST on a USD 2,001 to USD 10,000 payment9Skydo FAQ9
Razorpay MoneySaverLocal transfers from the US, UK and eurozone181% plus GST, 0% FX markup10Razorpay pricing10
Karbon BusinessUS bank transfers and marketplace payouts191% transaction fee11Karbon comparison page11
SWIFT wire to your Indian bankClients who already pay vendors by wireCharges in the bank's published policy42026 Regulations4

None of these charges changes the invoice value you report for GST; the fee is a cost of collection.

Which option is cheapest at $500, $2,000 and $5,000?

The cheapest option changes with invoice size, because Skydo charges a flat fee per band while Razorpay and Karbon charge a percentage.91011 The table below uses today's rate and published fees.

PlatformBest forINR on USD 2,000INR on USD 5,000INR on USD 10,000Cost on USD 5,000
SkydoMost INRTransfer to Skydo local account details or international SWIFT accountLocal bank transfers from major markets₹1,86,373₹4,67,991₹9,39,2060.68%
Karbon BusinessBank transfer to a Karbon virtual USD accountUS bank transfers and marketplace payouts₹1,86,262 to ₹1,86,601₹4,65,655 to ₹4,66,503₹9,31,311 to ₹9,33,0071.00 to 1.18%
RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)Local transfers from the US, UK and eurozone₹1,86,262 to ₹1,86,601₹4,65,655 to ₹4,66,503₹9,31,311 to ₹9,33,0071.00 to 1.18%

Ranked by INR received on USD 5,000. Reference rate: European Central Bank data for 13 November 2026. Fees, conversion markup, GST on fees and FIRA charges as published by each provider, checked 28 October 2026. Ranges appear where a provider publishes a range or does not state its GST rate. Intermediary bank charges are excluded. See the methodology.

For example, on a $5,000 invoice Skydo's USD 29 fee is 0.58% of the invoice before GST,9 while Razorpay's MoneySaver fee is 1% plus GST.10 On a $500 invoice, Skydo's USD 19 fee is 3.8% before GST,9 so a percentage fee can cost less on small invoices.

What documents and GST apply to an international invoice?

An international invoice needs a rule 46 tax invoice with the export endorsement, a valid LUT, and, after payment, a FIRA or FIRC and an e-BRC to prove receipt.7323 The table shows who each document suits.

DocumentBest forWhat it doesSource
Tax invoice under rule 46Every registered exporterCarries the export endorsement, recipient name and address, address of delivery and country of destination; issued within 30 days of supply7CGST Rules7
LUT in FORM GST RFD-11Registered suppliers invoicing without IGSTFiled for each financial year; deemed accepted on ARN generation312GST portal, CBIC312
FIRA or FIRCProving the foreign payment arrivedRule 89(2)(c) names Bank Realisation Certificates or Foreign Inward Remittance Certificates for refunds on exported services7CGST Rules7
e-BRCExporters closing the payment trailSelf-generated on the DGFT portal from the bank's inward remittance message (IRM)23DGFT23
EDFEvery services exporter from 1 October 2026Declaration to the AD bank under the 2026 Regulations4RBI4

For the invoice layout, see the export invoice format and the export invoice generator; for filing, see how to file an LUT.

What changes in 2026 for international invoices from India?

Several rules behind international invoices changed in 2026, on both the GST and RBI sides.42425

  • New FEMA regulations: The 2026 Regulations came into force on 1 October 2026, replacing the 2015 Regulations.4
  • EDF for all services: From 1 October 2026 every services exporter files an EDF, including non-software exporters.4
  • Realisation period: Realisation is nine months from the invoice date under regulation 5 as amended on 22 September 2026.5
  • Intermediary rule omitted: Section 13(8)(b) of the IGST Act, which placed intermediary services at the supplier's location, was omitted by the Finance Act, 2026 from 30 March 2026.24
  • Condition (v) under review: The 57th GST Council meeting on 8 October 2026 recommended omitting condition (v) of section 2(6); this is a recommendation and needs a change in law.25
  • New income-tax law: The Income-tax Act, 2025 applies from 1 April 2026, so invoices from that date fall in tax year 2026-27.26

Check the GST on export of services guide when the condition (v) change is notified.

How did we verify this?

We checked this page against the sources below on 31 October 2026. Provider fees, conversion markups and RBI payment aggregator (PA-CB) status were checked on 28 October 2026. Rupee amounts use European Central Bank reference rates for 13 November 2026. Read our methodology or report an error.

  1. [1]CBIC: IGST Act, 2017, section 2(6) (export of services)
  2. [2]CBIC: IGST Act, 2017, section 16 (zero-rated supply)
  3. [3]GST Portal user guide: Furnishing of Letter of Undertaking (FORM GST RFD-11)
  4. [4]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, 4 and 5
  5. [5]RBI: Notification FEMA 23(R)/(1)/2026-RB dated 22 September 2026, amending regulation 5 (realisation period)
  6. [6]CBIC: IGST Act, 2017, section 13 (place of supply where supplier or recipient is outside India)
  7. [7]CBIC: CGST Rules, 2017 (consolidated), rule 46 (tax invoice and export endorsement), rule 47 (time limit) and rule 89(2)(c) (refund documents)
  8. [8]CBIC: CGST Rules, 2017, rule 96A (export under bond or Letter of Undertaking), clause (1)(b) as substituted by Notification No. 12/2024-Central Tax, 10 July 2024
  9. [9]Skydo FAQs, How much does Skydo charge? (checked 2026-10-28)
  10. [10]Razorpay, Multi-Currency Account for International Bank Transfers (MoneySaver Export Account pricing) (checked 2026-10-28)
  11. [11]Karbon Business, PayPal Alternative comparison page (checked 2026-10-28)
  12. [12]CBIC Circular No. 40/14/2018-GST (LUT deemed accepted on generation of ARN)
  13. [13]Notification No. 10/2017-Integrated Tax (exemption from registration for inter-State suppliers of taxable services up to ₹20 lakh), GSTZen reproduction
  14. [14]GST Council: Notification No. 10/2023-Central Tax (e-invoicing for aggregate turnover above ₹5 crore from 1 August 2023)
  15. [15]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  16. [16]Skydo, Receive international payments as a freelancer in India (product page) (checked 2026-10-28)
  17. [17]RBI: Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, Payment Aggregators list dated 16 October 2026 (checked 2026-10-28)
  18. [18]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  19. [19]Karbon Business, Karbon for Freelancers (checked 2026-10-28)
  20. [20]Karbon Forex Terms and Conditions, Interropac Private Limited (checked 2026-10-28)
  21. [21]RBI: A.P. (DIR Series) Circular No. 20 dated 16 January 2026 (EDF for exports of services; earlier SOFTEX circulars superseded)
  22. [22]RBI: Master Direction on Regulation of Payment Aggregator dated 15 September 2025, paragraph 11(d) (transaction limit)
  23. [23]DGFT: eBRC services page, self-certification of eBRC from bank inward remittance messages (IRMs), Trade Notice 33/2023-24 dated 10 November 2023
  24. [24]Finance Act, 2026 (Gazette of India), section 157 (omission of section 13(8)(b) of the IGST Act from 30 March 2026)
  25. [25]GST Council: press release on the recommendations of the 57th meeting, 8 October 2026
  26. [26]PIB: Income-tax Act, 2025 in force from 1 April 2026
  27. [27]Skydo, Terms of Use, last updated 9 April 2026 (checked 2026-10-28)

Frequently asked questions

Do I charge GST on an invoice to a foreign client from India?+

An invoice that meets all five export of services conditions in section 2(6) of the IGST Act is a zero-rated supply.12 A registered supplier with a valid Letter of Undertaking issues the invoice without IGST.23 Without an LUT, IGST is charged and refunded only for classes of services the government has notified under section 16(4).2

What exact LUT wording goes on an export invoice from India?+

Rule 46 of the CGST Rules requires the endorsement "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" on an export invoice under an LUT.7 The same invoice also shows the recipient's name and address, the address of delivery and the country of destination.7

Can I invoice a foreign client in USD from India?+

An export invoice from India can be raised in US dollars or another foreign currency, because section 2(6) of the IGST Act requires payment in convertible foreign exchange or in rupees where RBI permits.1 Invoices in foreign currency must be realised within nine months of the invoice date; rupee invoices get twelve months.45

Is an LUT valid for every invoice in the year?+

An LUT in FORM GST RFD-11 is furnished on the GST portal for a financial year, and covers export invoices issued in that year.3 CBIC Circular 40/14/2018-GST says the LUT is deemed accepted once the ARN is generated.12 A new LUT is filed for the next financial year before invoicing exports without IGST.

What happens to GST if the foreign client pays late under an LUT?+

Under rule 96A(1)(b) of the CGST Rules, IGST with interest becomes payable if export payment is not received within one year of the invoice date, or the period allowed under FEMA including any RBI-permitted extension, whichever is later.8 The tax is due within 15 days after that period ends.8

Do I need GST registration to invoice international clients from India?+

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 GST registration under Notification 10/2017-Integrated Tax.13 An LUT, however, is filed by a registered person on the GST portal, so zero-rating under an LUT needs registration.3

Is e-invoicing required for export invoices from India?+

E-invoicing applies to registered persons whose aggregate turnover is above ₹5 crore, from 1 August 2023 under Notification 10/2023-Central Tax.14 Below that threshold, a freelancer or small agency issues a regular rule 46 tax invoice with the export endorsement, within 30 days of supplying the service under rule 47.7

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

Invoicing

What should an export of services invoice contain under GST?

The fields an export of services invoice needs under Rule 46 of the CGST Rules, the LUT endorsement wording, currency, numbering and a sample layout.

GST

How do you file an LUT for export of services on the GST portal?

Step-by-step guide to filing a Letter of Undertaking in FORM GST RFD-11 for export of services: eligibility, validity, late filing and the ARN on invoices.

GST

How 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.

GST

How 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.

RBI and FEMA

How 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.