How do you raise an invoice in foreign currency from India?

Most foreign clients expect to be billed in their own currency. An Indian designer working for a London studio bills in pounds, a developer working for a US startup bills in dollars, and a translator working for a Berlin agency bills in euros. A foreign currency invoice has to satisfy three sets of rules at once: GST invoice rules, foreign exchange (FEMA) rules administered by the Reserve Bank of India (RBI), and your own accounting.

This guide covers registered and unregistered service exporters under the rules in force in October 2026.¹² For a blank layout, see the export invoice format and the export invoice generator.

What is a foreign currency export invoice?

A foreign currency export invoice is an invoice that bills a client outside India in the client's currency, such as USD, EUR or GBP, for a service supplied from India. For a GST-registered exporter, the invoice must carry the particulars in rule 46 of the CGST Rules, with export details in place of the domestic recipient fields.¹

• Currency: the agreed fee in the client's currency, with the rupee value noted at the rate for the date of supply.¹
• GST treatment: usually no GST, because the service is a zero-rated export when all five conditions in section 2(6) of the IGST Act are met.⁵
• FEMA treatment: an Export Declaration Form (EDF) and realisation within nine months under the 2026 Regulations.²³

For example, a Pune video editor billing a Toronto agency CAD 3,000 shows CAD 3,000 on the invoice and records the rupee value in the books, as rule 34(2) requires a rupee value for the date of supply.¹

Who needs to raise an export invoice in foreign currency?

Any Indian service exporter billing a foreign client in that client's currency needs a foreign currency export invoice. The rules that apply depend on GST registration and the currency of billing.¹³

Every exporter in the table still files an EDF from 1 October 2026.²

How do you raise an invoice in foreign currency from India?

You raise an invoice in foreign currency by agreeing terms, confirming your LUT, issuing the invoice with the rule 46 particulars and recording the rupee value.¹⁴ The steps for a typical exporter, in order, are:

1. Agree the currency, fee, payment terms and who bears bank charges with the client.
2. If registered under GST, make sure your LUT for the financial year is filed in FORM GST RFD-11.⁴
3. Raise the invoice with the rule 46 particulars, the export endorsement and the amount in the client's currency.¹
4. Note the rupee value at the rate for the date of supply.¹
5. File the EDF with your bank within the time the 2026 Regulations allow.²
6. When paid, collect the FIRA or credit advice and record the receipt and any exchange difference.⁶
7. Track the invoice until paid, inside the nine-month realisation period.³

See how to file an LUT for the LUT step.

What particulars, rates and deadlines apply to a foreign currency export invoice?

A foreign currency export invoice needs the rule 46 particulars, a rupee value at the rate for the date of supply, and FEMA deadlines for the EDF and realisation.¹²³ The rule 46 particulars for an export of services are:¹

Which exchange rate applies to a foreign currency export invoice?

Rule 34(2) of the CGST Rules says the rate of exchange for valuing taxable services is the rate determined under generally accepted accounting principles for the date of time of supply.¹ Under AS 11, that is the rate on the transaction date, or a weekly or monthly average if rates are stable.⁶

• Currency code: state USD, EUR, GBP or AUD next to every amount, beside or in place of a symbol.
• Bank charges: say who bears them. If the client pays "OUR" charges, the full amount should arrive; otherwise intermediaries may deduct fees.
• Bank details: add them exactly as your bank gives them for inward remittances, including the SWIFT code or local account details if you use a collection account.
• Purpose of payment: describe it in words. Your bank reports a five-character purpose code ("P" plus four digits) for the receipt.⁷

How is GST handled on a foreign currency export invoice?

Most foreign currency invoices to clients abroad carry no GST because the service is a zero-rated export, provided all five conditions in section 2(6) of the IGST Act are met, including payment in convertible foreign exchange (or rupees where RBI permits).⁵ A registered exporter usually files an LUT in FORM GST RFD-11 for the financial year and then invoices without integrated tax.⁴ See GST on export of services.

What happens if a foreign currency export invoice is wrong?

A foreign currency export invoice that misses a section 2(6) condition does not describe an export of services, so the zero-rated GST treatment does not apply.⁵ Missing details also cause practical problems with your bank and your books.

• Export conditions: if payment does not come in convertible foreign exchange, or rupees where RBI permits, one of the five export conditions fails.⁵
• Realisation: an invoice still unpaid after nine months from its date is outside the realisation period under regulation 5.³
• Books: a rupee value recorded at the wrong rate distorts the exchange gain or loss you post on receipt.⁶

If your situation involves an intermediary, a group company or an unusual payment route, confirm the treatment with a chartered accountant.

What is the timeline after raising a foreign currency export invoice?

From 1 October 2026, the FEMA (Export and Import of Goods and Services) Regulations, 2026 (the 2026 Regulations) set the timeline every service exporter follows after invoicing.²

The EDF goes to the specified authority, usually the authorised dealer (AD) bank.² See EDF for service exporters and FIRC vs FIRA vs e-BRC.

Note: How the EDF works for payments received through PayPal or a cross-border payment aggregator is not yet clear in practice. Ask your provider or bank before your first invoice under the 2026 Regulations.²

In your books, record the invoice in rupees at the transaction-date rate, then record the rupees actually received, and post the difference as an exchange gain or loss.⁶ Bank and platform fees go to a separate expense line; see how to account for foreign currency invoices.

What are the common mistakes on a foreign currency export invoice?

The common mistakes on a foreign currency export invoice are missing rule 46 particulars, a missing LUT endorsement and an unrecorded rupee value.¹

• Symbol without code: "$" alone can mean US, Canadian or Australian dollars, so write the currency code.
• Endorsement left out: an invoice under an LUT needs the rule 46 export endorsement word for word.¹
• No country of destination: rule 46 requires the name of the country of destination for exports.¹
• Rate not noted: the rupee value at the rate for the date of supply is needed for GST valuation.¹
• Silent on bank charges: without "OUR" charges, intermediaries may deduct fees from the amount sent.

For a conversion while drafting the invoice, see the USD to INR rate, and to check whether your service qualifies as an export, try the export of services checker.