How do I issue a GST invoice for services rendered to a foreign client?
Zero-Rated Export of Services
If you provide software, IT consulting, or digital services to overseas clients, it qualifies as "export of services" and is zero-rated under GST. You do NOT charge GST on such invoices.
LUT (Letter of Undertaking)
File LUT annually on the GST portal (free of cost) before raising export invoices. With LUT, you can export without paying 18% IGST. Without LUT, you must pay IGST and claim refund later (poor cash flow).
Invoice Format for Service Exports
The export invoice must include: your GSTIN, LUT reference number (e.g., AD270524123456IN), client's name and country, SAC code (998314 for IT services, 998311 for consulting), amount in foreign currency (USD/EUR/GBP), INR equivalent, and the declaration: "Supply Meant for Export Under LUT Without Payment of IGST".
SAC Codes for IT Services
998314 — IT design and development | 998311 — IT consulting | 998313 — IT infrastructure management | 998312 — IT support and maintenance | 998316 — Cloud/SaaS services
Use our free Export Invoice Generator for the correct format. All at zero GST with LUT declaration.
TDS on IT Services (India clients)
Indian clients deduct TDS at 10% under Section 194J on professional fees above Rs 30,000/year. Your invoice should mention: "TDS applicable under Section 194J" if billing Indian companies. Use our TDS Calculator.