GST on International Payments for Indian Freelancers (2026)

Under the IGST Act, 'export of services' is zero-rated — which means GST rate is 0% and you can claim input tax credit. An 'export of service' requires:

• The supplier (you) is in India
• The recipient (client) is outside India
• Payment is received in foreign currency
• The place of supply is outside India

Most freelance services for foreign clients qualify. You don't charge GST on your invoice — and you can still claim GST credit on business expenses (software, equipment, office expenses).

LUT is a declaration filed with your GST portal allowing you to export without paying IGST upfront. Without LUT, you'd pay 18% IGST on each invoice and claim a refund — which takes 60–90 days. LUT is renewed each financial year.

1. Log in to GST portal (gst.gov.in)
2. Go to Services → User Services → Furnish LUT
3. Select financial year, fill details, e-sign with DSC or Aadhaar OTP
4. Submit — receive LUT reference number
5. Quote LUT reference on all export invoices

• Declare all export invoices in GSTR-1 Table 6A (Zero-rated supply).
• Include: invoice number, date, foreign country, port code, foreign currency amount, exchange rate, INR equivalent.
• Port code for software/service exports: use 9989001 (Software) or the relevant SAC code.
• GSTR-3B: show export taxable value in row 3.1(b) (Zero rated supply).
• Monthly filers: GSTR-1 by 11th of next month. Quarterly filers: 13th of month after quarter end.