The invoice above has everything a US client’s accounts team needs to process payment. Currency in USD, INR equivalent with the RBI rate, SWIFT code for the wire, zero-rated tax under LUT, and the export declaration at the bottom. Here’s what each part means and why it’s there.
LUT or IGST: the two options
When you export services from India, GST gives you two choices. Almost every freelancer picks Option 1.
| With LUT | Without LUT | |
|---|---|---|
| Tax on invoice | 0% (zero-rated) | 18% IGST |
| Client pays | Invoice amount only | Invoice amount + 18% IGST |
| Refund | Nothing to claim | File for IGST refund (weeks to months) |
| Declaration on invoice | “Supply meant for export under LUT without payment of IGST” | “Supply meant for export on payment of IGST” |
| How to get it | GST portal→ Services → User Services → Furnish LUT | No action needed (default) |
File your LUT once a year. It takes 5 minutes on the GST portal. It gets approved instantly for most freelancers. If you don’t file it, every export invoice must charge 18% IGST and you’ll be chasing refunds all year.
Currency and the RBI exchange rate
Invoice in whatever currency your client pays you in. USD for American clients, GBP for British, AED for UAE, SGD for Singapore. Your contract specifies the currency. Your invoice should match.
GST requires one extra thing: the INR equivalent of the total amount, calculated using the RBI reference rate on the date of the invoice. This is not optional.
What this looks like on the invoice
The RBI publishes rates daily on rbi.org.in. Use the rate for the date on your invoice. If it’s a weekend or holiday, use the last available working day’s rate.
SWIFT code and bank details
International clients pay via wire transfer (SWIFT). Your invoice must include your SWIFT code (also called BIC) alongside the usual IFSC and account number. Without it, the client’s bank cannot route the payment.
Bank details section on an export invoice
Account name
Aditi Sharma
Account number
1234567890
IFSC
SBIN0001234
SWIFT / BIC
SBININBB
Bank
State Bank of India
Branch
Indiranagar, Bangalore
Where to find your SWIFT code: Check your passbook, your bank’s website, or call your branch. You can also look it up on swift.com. Most Indian banks have a single SWIFT code for all branches (e.g., SBININBB for SBI, HDFCINBB for HDFC).
What your export invoice must include
Everything a domestic invoice has, plus a few extras. Here’s the full list, side by side.
| Field | Domestic | Export |
|---|---|---|
| Your name, address, contact | ✓ | ✓ |
| PAN | ✓ | ✓ |
| GSTIN | ✓ | ✓ |
| Invoice number (sequential) | ✓ | ✓ |
| Invoice date | ✓ | ✓ |
| Line items (description, qty, rate) | ✓ | ✓ |
| Tax breakup (CGST/SGST or IGST) | ✓ | ✓ |
| Bank details (account, IFSC) | ✓ | ✓ |
| Payment terms | ✓ | ✓ |
| Client's country | -- | ✓ |
| Invoice currency (USD, GBP, etc.) | -- | ✓ |
| RBI exchange rate | -- | ✓ |
| INR equivalent amount | -- | ✓ |
| Export declaration (LUT/IGST) | -- | ✓ |
| SWIFT / BIC code | -- | ✓ |
| Client's state + GSTIN | ✓ | -- |
Country-by-country notes
| Country | Currency | VAT / Tax | Payment | Typical terms |
|---|---|---|---|---|
| United States | USD | No federal VAT. You don’t charge any tax. | SWIFT wire | Net 30 |
| United Kingdom | GBP | 20% VAT, but client handles it (reverse charge). | SWIFT wire | Net 30 |
| UAE | AED / USD | 5% VAT, but client handles it (reverse charge). | SWIFT wire | Net 30-45 |
| Singapore | SGD / USD | 9% GST, but client handles it (reverse charge). | SWIFT wire | Net 30 |
| Australia | AUD | 10% GST, but client handles it (reverse charge). | SWIFT wire | Net 30 |
| Germany / EU | EUR | 19% VAT (DE), but client handles it (reverse charge). | SWIFT / SEPA | Net 30 |
| Indonesia | IDR / USD | 11% VAT, but client handles it. | SWIFT wire | Net 30-45 |
Bottom line:You never charge the foreign country’s VAT/GST. The client handles their own tax under reverse charge. Your only concern is Indian GST (which is 0% under LUT).
After the invoice: FIRC and compliance
When the payment lands in your bank account, your bank issues a Foreign Inward Remittance Certificate (FIRC). This is your proof that the payment came from outside India. Keep it filed with the corresponding invoice.
You’ll need the FIRC for:
- GST refund claims (if you charged IGST instead of using LUT)
- Income tax audit documentation
- FEMA compliance (RBI regulations on foreign exchange)
Most banks issue the FIRC automatically within a few days of the wire landing. If yours doesn’t, call and ask. Some banks charge Rs 100-500 per certificate.
Useful government links
Ready to send your first export invoice?
Pick the client’s country, enter the exchange rate, and we handle the rest. Tax, declaration, currency, PDF. All sorted.
Create your first export invoice freeHave more questions? vasundhra@evrything.online