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IndiaGST & Corporate TaxUpdated: Sep 13, 2026
Direct Answer
Freelancers exporting services (e.g., to US clients) do not have to charge GST if they file a Letter of Undertaking (LUT) on the GST portal. Without an LUT, they must pay 18% IGST and claim a refund later. Exporting requires mandatory GST registration if turnover exceeds Rs 20 Lakhs.
The Zero-Rated Supply Rule
Exporting services is considered a 'Zero-Rated Supply' under GST. This means you do not add 18% to your client's invoice.
Mandatory Documentation
To qualify as an export:
- The supplier is in India, and the recipient is outside India.
- Payment is received in convertible foreign exchange (requires a FIRC or FIRA from your bank/payment gateway).
- An active Letter of Undertaking (LUT) must be filed for the financial year before issuing the invoice.
If you receive payment in INR from a foreign client's Indian branch, it is not considered an export and 18% GST applies.