Export Invoice Under GST: Format, Requirements, and Compliance

Export Invoice Under GST: Complete Guide

Exporting goods or services from India requires specific invoicing documentation under GST. Export transactions are treated as zero-rated supplies, meaning they are not exempt from GST but are taxed at zero percent or with the option to claim a refund. Getting the export invoice format right is essential for compliance and for claiming refunds.

Two Methods for Export Under GST

Exporters have two options for handling GST on exports:

Letter of Undertaking (LUT)

Most exporters prefer the LUT route as it avoids blocking capital in tax payments. To use LUT:

• File LUT in Form GST RFD-11 on the GST portal before the start of the financial year
• LUT is valid for the entire financial year and must be renewed annually
• The exporter undertakes to pay IGST with interest if export obligations are not met
• LUT is available to all exporters except those prosecuted for tax evasion exceeding ₹2.5 crore

Mandatory Fields in an Export Invoice

In addition to the standard tax invoice fields, an export invoice must include:

1. Label: The invoice must be marked as "Supply meant for export on payment of IGST" or "Supply meant for export under LUT without payment of IGST"
2. Shipping bill number and date: For export of goods (can be added later if not available at the time of invoicing)
3. Port of loading: The Indian port from which goods are exported
4. Country of destination: The importing country
5. Currency: The currency in which payment is received
6. Exchange rate: As per the applicable customs notification

Export Invoice for Services

When exporting services, the rules differ slightly:

• No shipping bill is required
• The recipient must be located outside India
• The place of supply must be outside India
• Payment must be received in convertible foreign exchange or Indian rupees (where permitted by RBI)
• The supplier and recipient must not be establishments of the same entity (unless they are distinct persons under GST)

Currency and Exchange Rate

Export invoices are typically raised in the buyer foreign currency (USD, EUR, GBP, etc.). The exchange rate for GST purposes is the rate notified by CBIC (based on customs exchange rates), not the bank rate. This rate is updated periodically and must be applied consistently.

Common Mistakes in Export Invoicing

• Not mentioning the LUT reference or marking the invoice incorrectly
• Using the bank exchange rate instead of the customs notified rate
• Missing the shipping bill number (for goods exports)
• Incorrect place of supply — must be outside India for zero-rating
• Not filing LUT before making export supplies
• Failing to receive payment within the prescribed time (180 days from the date of invoice for goods)

Refund of IGST on Exports

If you export with IGST payment, the refund is processed automatically by customs through the ICEGATE system. For LUT-based exports, you claim a refund of accumulated ITC through Form GST RFD-01 on the GST portal. Ensure your GSTR-1 correctly reports export invoices with the shipping bill details for seamless refund processing.

Export Invoicing with FileWithUs.ai

FileWithUs.ai simplifies export invoicing with built-in templates for both LUT and IGST-paid exports. The platform supports multi-currency invoicing with automatic exchange rate application, includes all export-specific mandatory fields, and maintains separate numbering for export invoices. You can generate export-ready PDF invoices that meet both GST and international trade documentation standards.

Export invoicing requires attention to detail that goes beyond domestic billing. Get the format right, maintain your LUT, and track your foreign exchange receipts to stay compliant and ensure timely refunds.