Is a service to a foreign client always an export?

No. All five conditions in section 2(6) have to be met, including a place of supply outside India and payment in foreign exchange.

Is export of services exempt from GST?

No, it is zero-rated. You charge no IGST under an LUT, but you can still claim input tax credit.

If my client pays me in rupees, is it still an export?

Only where RBI permits payment in rupees for that export. Otherwise the payment condition is not met.

Export guide

When is a service an export under GST? The five conditions

Billing a foreign client does not by itself make your work an export. Under GST, a service is an export only when all five conditions in section 2(6) of the IGST Act are met.

Checked against the rules on 6 October 2026

In short

You are in India, and your client is outside India.
The place of supply is outside India.
You are paid in convertible foreign exchange, or in rupees where RBI allows.
You and your client are not two establishments of the same business.
Meet all five and the service is zero-rated: no IGST under an LUT.

The five conditions

	Condition in section 2(6)	What it means in practice
1	The supplier is located in India	You, from your place of business in India.
2	The recipient is located outside India	Your client's business, or home for an individual, is abroad.
3	The place of supply is outside India	For most services this is where the client is, so it follows from condition 2. Some services have their own rules (below).
4	Payment is received in convertible foreign exchange, or in rupees wherever permitted by RBI	Money arrives as foreign currency, or as rupees through a channel RBI allows. Keep the FIRC or FIRA.
5	Supplier and recipient are not merely establishments of a distinct person	Your Indian office billing your own branch abroad is not an export.

Place of supply: when it isn't where the client is

For most services, section 13(2) of the IGST Act puts the place of supply at the recipient's location, so a client abroad means a place of supply abroad. Section 13 has exceptions, though. Services on goods that are physically in India, services tied to immovable property in India, and admission to or organisation of events held in India can have their place of supply in India even for a foreign client.

If your work involves any of these, or you arrange services between other parties, check the place of supply with your CA before you zero-rate it.

Zero-rated, not exempt

An export of services is a zero-rated supply under section 16 of the IGST Act. That matters: you charge no tax, but you keep the input tax credit on what you bought to deliver it. You can zero-rate it by filing an LUT and invoicing with no IGST, or by paying IGST and claiming a refund.

Do you need GST registration to export?

An export of services is treated as an inter-state supply. Suppliers of services whose aggregate turnover is under ₹20 lakh (₹10 lakh in special category states) are generally not required to register for it. Once you are registered, voluntarily or because you crossed the limit, your exports go through your GST returns and your LUT.

If a condition fails

Then the service is not an export. If the client is abroad but the place of supply is in India, for example, the supply is taxable in India like any domestic sale. Fixing that later means amending invoices and returns, so decide before you invoice.

Questions people ask

Is a service to a foreign client always an export?: No. All five conditions in section 2(6) have to be met, including a place of supply outside India and payment in foreign exchange.
Is export of services exempt from GST?: No, it is zero-rated. You charge no IGST under an LUT, but you can still claim input tax credit.
If my client pays me in rupees, is it still an export?: Only where RBI permits payment in rupees for that export. Otherwise the payment condition is not met.

Sources

Integrated Goods and Services Tax Act, 2017: sections 2(6), 13 and 16