Is it an export of services?

Foreign clients don't automatically mean zero GST. Five conditions in Section 2(6) of the IGST Act must all hold. Tick what's true for you, then answer two questions about your setup, and the tool tells you where you stand — and what paperwork keeps it that way.

I (the supplier) am located in India your place of business is in India My client (the recipient) is located outside India a foreign company or individual; not an Indian branch of one The place of supply is outside India for most freelance services the default rule (s.13(2)) makes it the client's location — but performance-based services done in India, or services tied to Indian property/events, break this Payment comes in convertible foreign exchange (or INR via a Special Rupee Vostro account) USD/EUR/GBP by wire, Wise, Payoneer, PayPal, Stripe — all fine My client is not merely my own establishment abroad a foreign branch/office of the same entity fails this — a separate client passes

Your role in the deal

GST status

The rules this tool applies

Five conditions, all required (s.2(6) IGST): supplier in India · recipient outside India · place of supply outside India · payment in convertible forex (or INR via a Special Rupee Vostro account, per Circular 202/14/2023) · supplier and recipient not merely establishments of one person.
Place of supply (s.13(2)): for most services it is the recipient's location — which is what makes remote freelance work an export. Performance-based services physically done in India, and services tied to Indian immovable property or events, follow different rules.
Intermediaries — changed on 30 March 2026: s.13(8)(b) IGST was omitted by the Finance Act 2026, so agents and facilitators serving foreign recipients now fall under the default rule and can qualify as exporters — for invoices dated on or after 30 March 2026. Earlier periods remain contested; no CBIC transition circular has been issued.
Zero-rated ≠ no paperwork: export without payment of IGST requires an LUT (Form RFD-11), filed online each financial year, before the export. Without it, you pay IGST on the invoice and claim refund under Rule 89 — or, if you pay nothing and have no LUT, you face a demand with 18% interest.
Rule 96A one-year clock: if a foreign client hasn't paid within one year of the invoice, IGST plus 18% interest becomes payable within 15 days — and the LUT facility is withdrawn until you pay.

Worked example

A developer in Pune builds an app for a Berlin start-up, paid in EUR via Wise. All five conditions hold — supplier in India, recipient abroad, place of supply Berlin (s.13(2)), forex received, separate entities — so it is a zero-rated export. With an LUT filed in April, her invoices carry no GST and she claims refund of the GST she paid on her laptop and software (Rule 89; 90% provisional refund if the system rates her low-risk). Had she skipped the LUT, the same invoice would need 18% IGST paid upfront and refunded later — legal, but cash stuck for months.

Edge cases to know

Foreign client, Indian office: if you bill the client's Indian branch, the recipient is in India — not an export, 18% applies.
Paid in INR by an Indian intermediary (a platform's Indian entity): the forex condition fails unless the money is routed as RBI-permitted; check who the legal recipient is.
OIDAR/online services to overseas customers follow s.13(12) — recipient's location — so they export like any other service.
The ₹1,000 refund floor still applies to service exporters — the Finance Act 2026 amendment removing it covers exports of goods with payment of tax, and isn't notified yet.
Unregistered and under ₹20 lakh? No GST applies at all — but no LUT and no refunds either. Should you register voluntarily?

Related tools

GST registration checker — the upstream question.
Export invoice generator — LUT-ready invoices with the Rule 46 endorsement.
Guide: LUT & export of services — the whole process, step by step.

Last verified: 15 September 2026 — s.2(6) and s.13 IGST (incl. the s.13(8)(b) omission by Finance Act 2026, s.157), Rule 96A and Notification 37/2017-CT (LUT eligibility) cross-checked across CBIC text, Grant Thornton and two other independent sources · Not tax advice.