GST Registration for Export of Services

Yes, GST registration is mandatory if your annual aggregate turnover from exporting services exceeds ₹20 lakhs (₹10 lakhs for special category states like those in the northeast). Even if you are below the threshold, voluntary registration is strongly recommended. Without a GSTIN, you cannot file a Letter of Undertaking (LUT), claim input tax credit (ITC) refunds on your business expenses, or issue a legally compliant export invoice with your GSTIN. Most serious service exporters — including freelancers and consultants — register voluntarily to maximise tax efficiency.

Yes. The standard method for service exporters is to file a Letter of Undertaking (LUT) on the GST portal before raising your first export invoice. Under LUT, you do not charge IGST on your invoice — the invoice reads “Supply meant for export under LUT [reference number].” You can then claim a refund of the GST you paid on your business inputs (rent, software, internet, professional services, etc.) by filing Form RFD-01. This keeps your working capital free and makes invoicing cleaner for overseas clients.

The standard documents are: PAN card and Aadhaar card of the applicant or business owner, a recent photograph, bank account details with a cancelled cheque or bank statement, business address proof (electricity bill plus rent agreement for rented premises, or electricity bill plus ownership proof for own premises), and constitution proof for businesses — this means a Certificate of Incorporation + MOA for companies, a Partnership Deed for partnership firms, or an LLP Agreement for LLPs. Sole proprietors require only personal KYC documents.

If all documents are in order, GST registration is typically approved within 2–10 working days of application submission. The GST officer may raise a query (Form GST REG-03) if documents are incomplete or the application needs clarification — this adds 7–14 days. SetupFiling.in prepares and submits your complete application within 24 hours of receiving your documents, minimising the risk of queries and delays. In most cases, our clients receive their GSTIN within 3–7 working days.

IGST (Integrated Goods and Services Tax) is the GST applicable on interstate and cross-border transactions. For export of services, IGST is technically applicable — but exports are classified as zero-rated supplies, meaning the IGST rate is effectively 0%. If you export under LUT, you don’t charge IGST at all. If you choose to export with payment of IGST (the less common method), you charge 18% IGST on your invoice and then claim a full refund from the GST department after payment is received. Most exporters use the LUT method to avoid blocking working capital.

A Foreign Inward Remittance Certificate (FIRC), or its electronic version e-FIRC, is issued by your bank confirming receipt of a foreign currency payment against a specific export invoice. It is required when filing Form RFD-01 (GST refund application) to prove that foreign exchange has been received for the exported services. Without FIRC/e-FIRC, your refund application will be incomplete and may be rejected. Request e-FIRC from your bank within 24–48 hours of receiving each foreign payment and store it against the matching invoice for easy retrieval at refund time.

Yes. All GST-registered persons — including those who only export services — must file regular GST returns. You must file GSTR-1 (outward supplies return) and GSTR-3B (summary return with ITC details) every month, and GSTR-9 (annual return) by December 31 of the following financial year. Even if your export invoices attract zero GST, you must report them in GSTR-1 under Table 6A. Failure to file returns on time attracts late fees (₹50/day) and can block your ITC refund claims.

Yes — and it is advisable. Freelancers providing services to overseas clients via platforms like Upwork, Toptal, direct contracts, or agencies can register for GST and treat their income as export of services. Once registered, they can claim refunds of the 18% GST they pay on expenses like software subscriptions, co-working memberships, internet, and professional tools — which can amount to meaningful annual savings. The turnover threshold for mandatory registration is ₹20 lakhs, but voluntary registration below this threshold is allowed and often beneficial.

If you export services without GST registration when your turnover exceeds the threshold, you are in violation of the CGST Act. Consequences include: inability to claim ITC refunds (which can be a significant financial loss), requirement to pay GST retrospectively with interest at 18% per annum, penalty of 10% of the tax amount (minimum ₹10,000), and in serious cases, prosecution. Additionally, your overseas contracts may not be legally defensible, and banking documentation for foreign exchange repatriation becomes more complex without a GSTIN

File Form RFD-01 on the GST portal after filing your GSTR-1 and GSTR-3B returns. Submit your export invoices, e-FIRC for each invoice, LUT acknowledgment, and a self-declaration. The GST officer will process the claim and issue the refund within 60 days of a complete application. File quarterly rather than annually to improve cash flow. Ensure that the invoice details in RFD-01 match your GSTR-1 entries exactly — even minor mismatches cause processing delays.

This is a common point of confusion. Zero-rated supply means GST rate is 0% and the exporter can still claim ITC on inputs — export of services falls in this category. Exempt supply means no GST applies and the supplier cannot claim ITC on related inputs. If your export was mistakenly classified as exempt supply, you would lose your right to ITC refunds. Always ensure your export invoices are correctly classified as “zero-rated supply” — not exempt supply.