What is GST on services provided to foreign clients?

Services provided to a client located outside India, where the payment is received in convertible foreign exchange, are treated as an "export of service". Exports are zero-rated supplies under GST, meaning no tax is charged to the client. The exporter can claim a refund of the input tax credit (ITC) accumulated on their expenses.

Startup Example: An Indian startup provides software development services to a US client. It can issue an invoice without GST by filing a Letter of Undertaking (LUT) and can later claim a refund of the GST it paid on its office rent and other inputs.

We specialize in GST for exporters.