GST LUT for service exporters — IT freelancers, consultants & SaaS founders
If you're a GST-registered freelancer, consultant, or SaaS business billing a client outside India and receiving payment in convertible foreign exchange, that supply qualifies as an export of services under GST — and an LUT works exactly the same way for you as it does for a company shipping physical goods.
When a service qualifies as an export
Broadly, five conditions need to be met under the IGST Act: the supplier is in India, the recipient is outside India, the place of supply is outside India, payment is received in convertible foreign exchange (or in INR where permitted by RBI), and the supplier and recipient aren't merely establishments of the same legal entity.
Why many freelancers miss this
It's easy to think of “export” as a term for factories and shipping containers, so many independent consultants and small SaaS teams keep charging — or wonder whether they should be charging — IGST on invoices to overseas clients without ever filing an LUT to avoid it in the first place.
Share your export details and we'll confirm your eligibility before filing anything.
Check my eligibility →The practical difference an LUT makes
For a consultant billing a handful of clients a few times a month, an unfiled LUT means each invoice either needs 18% IGST added (which many overseas clients simply won't pay, since it isn't their tax to bear) or gets raised incorrectly. An LUT resolves this cleanly, once, for the entire financial year.
GST registration is still required first
Exporting services doesn't exempt you from GST registration itself — if your aggregate turnover crosses the applicable threshold, you still need to register for GST before you can file an LUT at all. Being an exporter changes how the invoice is taxed, not whether registration is required in the first place.
I invoice in USD and get paid via PayPal or Wise — does that still count as convertible foreign exchange?
Generally yes, as long as the funds are ultimately received into your Indian bank account through an authorized banking channel in a freely convertible currency. If you're unsure about a specific payment gateway or structure, it's worth confirming with your CA before you rely on the export classification.
This article is for general information only. For your specific situation, consult a practicing CA.
Get your GST LUT filed today
Share your export details and our CA will confirm eligibility and file Form RFD-11 on the GST portal.
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