{"id":25164,"date":"2025-12-29T22:53:14","date_gmt":"2025-12-29T17:23:14","guid":{"rendered":"https:\/\/blog.razorpay.in\/blog\/?p=25164"},"modified":"2026-03-16T16:16:03","modified_gmt":"2026-03-16T10:46:03","slug":"gst-export-services-india-guide","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/gst-export-services-india-guide\/","title":{"rendered":"GST on Export of Services in India: A Complete Guide"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">If you provide services to clients abroad, GST applies differently than it does on domestic sales. Under GST, such transactions are treated as \u2018export of services\u2019, and classified as a zero-rated supply. That means you don\u2019t charge GST on your invoice and can still claim Input Tax Credit (ITC), which protects your margins and boosts competitiveness.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, exporting services isn\u2019t as simple as raising an invoice in dollars. Most exporters struggle with GST compliance and international payment management.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This guide breaks down the regulations, explains what qualifies as export of services under GST in India, and helps you avoid common compliance and payment hurdles.<\/span><\/p>\n<div style=\"border-left: 4px solid #0073aa; background: #f0f8ff; padding: 15px; margin: 20px 0; border-radius: 5px;\">\n<h2 style=\"color: #0073aa; font-size: 18px; margin: 0 0 8px 0; display: inline-block;\">Key Takeaways<\/h2>\n<ul style=\"display: inline-block; margin: 0 0 0 10px; padding-left: 18px; vertical-align: top;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">GST on export of services in India is zero-rated, but only when all five conditions under Section 2(6) of the IGST Act are met.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determining the place of supply correctly is crucial\u00a0 if it points to India, the transaction may be taxed as a domestic service.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Refunds can be claimed through <a href=\"https:\/\/razorpay.com\/learn\/what-is-gst-refund\/\">Form RFD-01<\/a>, but only with proper documentation such as FIRCs\/BRCs and export invoices.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Efficient payment tools and proactive compliance can speed up refunds and improve profitability on global projects.<\/span><\/li>\n<\/ul>\n<\/div>\n<h2><b>Understanding Export of Services Under GST<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Not every overseas transaction qualifies as an <a href=\"https:\/\/razorpay.com\/blog\/export-services-gst-conditions-guide\/\">export under GST<\/a> Section 2(6) of the IGST Act, 2017 clearly defines when a service can be treated as an export and classified as a zero-rated supply.<\/span><\/p>\n<p><strong>To qualify, all of the following five conditions must be met:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>The supplier is located in India<\/b><span style=\"font-weight: 400;\"> \u2013 Your business must operate from India.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>The recipient is located outside India<\/b><span style=\"font-weight: 400;\"> \u2013 The client must be based abroad.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Place of supply is outside India<\/b><span style=\"font-weight: 400;\"> \u2013 Service should be consumed or deemed to be consumed outside India.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Payment is received in foreign convertible currency<\/b><span style=\"font-weight: 400;\"> \u2013 USD, EUR, GBP, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Supplier and recipient are separate legal entities<\/b><span style=\"font-weight: 400;\"> \u2013 Transactions between a business and its overseas branches are not treated as exports under <\/span><b>GST<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h3><b>Conditions for a Service to Be Treated as Export Under GST<\/b><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Condition<\/b><\/td>\n<td><b>Requirement<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Supplier\u2019s location<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Must be in India<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Recipient\u2019s location<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Must be outside India<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Place of supply<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Outside India<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Payment method<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Received in convertible foreign currency<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Legal relationship<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Entities must be separate<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><b>Zero-Rated Supply and Benefits for Exporters<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Under GST, export of services is treated as a zero-rated supply. This means GST is not charged on the invoice, and exporters can still claim refunds on taxes paid for business inputs.<\/span><\/p>\n<p><b>Exporters have two ways to comply with GST:<\/b><\/p>\n<h4><b>1. Export Without Paying IGST<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">File a <a href=\"https:\/\/razorpay.com\/rize\/blogs\/letter-of-undertaking-lut-under-gst\">Letter of Undertaking<\/a> (<\/span><b>LUT<\/b><span style=\"font-weight: 400;\">)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Issue invoices without GST<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ideal for regular exporters who want to avoid blocking capital<\/span><\/li>\n<\/ul>\n<h4><b>2. Export After Paying IGST Upfront<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pay <a href=\"https:\/\/razorpay.com\/learn\/what-is-igst\/\">IGST<\/a> at the time of invoicing<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Claim a refund of the IGST paid later.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The real benefit of zero-rated supply lies in claiming refunds on Input Tax Credit. You can recover GST paid on services and goods used for export, <strong>such as:<\/strong><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Software tools and cloud platforms<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Third-party services<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Office utilities and equipment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Professional fees and compliance costs<\/span><\/li>\n<\/ul>\n<p><b>When managed correctly, zero-rated supply also helps you:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Protect working capital<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improve margins<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Offer competitive pricing internationally<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Maintain cleaner compliance records for audits<\/span><\/li>\n<\/ul>\n<p>Related Read : <a href=\"https:\/\/razorpay.com\/learn\/what-is-cgst-sgst-igst\/\">What is SGST, CGST, IGST &amp; UTGST? Types of GST Explained<\/a><\/p>\n<h2><b>Determining the Place of Supply for Services Export<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">To qualify as an export under GST, the place of supply must be outside India. Section 13 of the IGST Act explains how this is determined when either the supplier or the recipient is located abroad. These rules directly impact your eligibility for zero-rated GST benefits.<\/span><\/p>\n<p><b>Here\u2019s how each rules work in practice:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The default rule states that the place of supply is the location of the service recipient.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For services linked to immovable property, such as architectural or site assessment services, the location of the property decides the place of supply.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If a service is performance-based, like repairs, physical testing, or in-person training, the place of supply becomes the location where the service is actually performed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For event-related services like conferences, exhibitions, cultural or educational events, the event\u2019s physical location is treated as the place of supply.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><a style=\"background-color: #1a73e8; color: #ffffff; font-weight: 800; padding: 7px 15px; border-radius: 7px; font-size: 16px; text-decoration: none; display: inline-block; white-space: nowrap;\" href=\"https:\/\/razorpay.com\/international-payment-gateway-india\/?utm_source=blog&amp;utm_medium=referral&amp;utm_campaign=internationalpayments\">Explore Razorpay&#8217;s Global Payment Solutions<\/a><\/p>\n<h2><b>FEMA Compliance for Service Exporters<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">While GST handles tax treatment, every export of services must also follow the rules under <a href=\"https:\/\/razorpay.com\/blog\/foreign-exchange-management-act-fema\/\">FEMA<\/a> (Foreign Exchange Management Act), 1999. FEMA compliance is not optional; it is part of every <a href=\"https:\/\/razorpay.com\/international\/\">international transaction<\/a>.<\/span><\/p>\n<h3><b>Key FEMA Rules You Must Know:<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">FEMA, 1999 governs all cross-border transactions and use of foreign exchange in India.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Export proceeds must be realised and repatriated within 15 months from the date of export.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payment should be received in freely convertible foreign currency<\/span> <span style=\"font-weight: 400;\">such as USD, EUR, GBP, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In specific cases allowed by RBI, export earnings may also be received in Indian rupees.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">All payments must be routed through <a href=\"https:\/\/razorpay.com\/blog\/ad-code-in-india\/\">Authorised Dealer<\/a> (AD) banks, which verify documents and report the transaction.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exporters can open an <a href=\"https:\/\/razorpay.com\/blog\/razorpay-eefc-for-international-card-payments\/\">Exchange Earners Foreign Currency<\/a> (EEFC) account to retain foreign currency and reduce conversion costs.<\/span><\/li>\n<\/ul>\n<h2><b>GST on International Payments and Currency Conversion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The export of services may be zero-rated under GST, but the charges linked to receiving foreign payments are not. Banks and payment platforms levy GST on remittance processing, currency conversion, and other services.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Service Charges on Foreign Remittances: <\/b><span style=\"font-weight: 400;\">Banks and authorised dealers apply processing fees when receiving international payments. These charges attract 18% GST and are usually deducted before settlement.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>GST on Currency Conversion: <\/b><span style=\"font-weight: 400;\">When foreign currency is converted to INR, GST at 18% applies on the service value, not the full amount. Exporters must account for this while evaluating the effective cost of conversion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>How the Taxable Value is Calculated:<\/b><span style=\"font-weight: 400;\"> GST is charged only on the service portion of the currency conversion. Banks generally use either of these methods:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">A slab-based formula set under GST rules.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The difference between your conversion rate and the RBI reference rate for that day.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>GST on Documentation Fees<\/b><span style=\"font-weight: 400;\">: Banks charge fees for issuing <a href=\"https:\/\/razorpay.com\/blog\/firc-certificate\/\">Foreign Inward Remittance Certificate<\/a> (FIRC) or <a href=\"https:\/\/razorpay.com\/blog\/bank-realisation-certificate-brc\/\">Bank Realisation Certificate<\/a> (BRC), and these charges also attract GST. So it\u2019s important to record them while calculating your total cost per transaction.<\/span><\/li>\n<\/ul>\n<h2><b>How to Claim GST Refunds for Exported Services?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Once your service qualifies as export, you can claim a GST refund on the taxes paid for inputs or on the IGST paid at the time of export. The process is fully online, but it requires accurate documentation and strict adherence to timelines to avoid delays or rejection.<\/span><\/p>\n<p><b>Steps to Claim GST Refund for Exported Services<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>File Form RFD-01 on the GST Portal: <\/b><span style=\"font-weight: 400;\">The refund process begins with an online application using Form RFD-01. This form is available under the \u201cRefunds\u201d section on the GST portal.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Attach Supporting Documents:<\/b><span style=\"font-weight: 400;\"> You must upload export invoices, FIRC\/BRC as proof of foreign currency receipt, and a statement of Input Tax Credit utilised. These documents confirm that the transaction qualifies as a zero-rated supply.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Refund for Exports without IGST Payment: <\/b><span style=\"font-weight: 400;\">If you export services without paying IGST by using a LUT, you can claim a refund on the ITC that has accumulated on your purchases and expenses.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Refund for Exports with IGST Payment:<\/b><span style=\"font-weight: 400;\"> If IGST was paid at the time of export, the refund is claimed for the entire IGST amount paid on the invoice.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Follow the Deadline:<\/b><span style=\"font-weight: 400;\"> Refund applications must be submitted within<\/span> two years<span style=\"font-weight: 400;\"> from the relevant date of export. Missing this timeline may lead to loss of refund eligibility.<\/span><\/li>\n<\/ol>\n<h2><b>Common Challenges and Misconceptions for Service Exporters<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Many service exporters assume that sending an invoice overseas is enough to qualify for GST benefits, but compliance requires much more.<\/span><\/p>\n<p><strong>Here are the issues most exporters face:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Not All Foreign Payments Qualify as Exports: <\/b><span style=\"font-weight: 400;\">A service qualifies as an export only when all GST conditions are met together, including clearly establishing the place of supply outside India and receiving payment in a convertible foreign currency.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Place of Supply Confusion: <\/b><span style=\"font-weight: 400;\">In digital services or consulting, exporters struggle to prove that the service was used outside India. If this is unclear, GST may treat it as a domestic service.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Weak Documentation for Foreign Receipts:<\/b><span style=\"font-weight: 400;\"> Banks sometimes delay issuing FIRCs\/BRCs. Without them, you cannot prove that payment was received in foreign currency, which may block your GST refund.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Ignoring FEMA Requirements: <\/b><span style=\"font-weight: 400;\">If payments do not arrive within the permitted period or come in non-convertible currency, the transaction may be flagged for FEMA non-compliance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>GST on Extra Service Charges Is Often Overlooked: <\/b><span style=\"font-weight: 400;\">GST applies to fees charged for currency conversion, remittance, and documentation\u00a0 but many exporters don\u2019t record them properly, which affects expense calculations and ITC tracking.<\/span><\/li>\n<\/ul>\n<h3><b>Misconceptions vs. Actual Rules<\/b><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Misconception<\/b><\/td>\n<td><b>Actual Rule<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Any foreign payment qualifies as an export<\/span><\/td>\n<td><span style=\"font-weight: 400;\">All five GST conditions must be satisfied<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">SaaS or consulting is automatically export<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Place of supply must be outside India<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">FIRCs are optional<\/span><\/td>\n<td><span style=\"font-weight: 400;\">FIRCs\/BRCs are mandatory proof of foreign receipt<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">FEMA rules don\u2019t apply to freelancers<\/span><\/td>\n<td><span style=\"font-weight: 400;\">FEMA applies to all\u00a0 payments must come in foreign currency and within RBI timelines<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Bank and forex fees are non-GST services<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Extra service charges also attract 18% GST and should be recorded<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><b>How Razorpay MoneySaver Export Account Simplifies International Payments<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">International payments often involve high bank charges, delayed compliance documents, and slow settlements, which is why many exporters prefer an <a href=\"https:\/\/razorpay.com\/international-payment-gateway-india\/\">international payment gateway<\/a> for faster and more reliable collections.\u00a0<\/span><a href=\"https:\/\/razorpay.com\/accept-international-payments\/bank-transfers\/\"> <span style=\"font-weight: 400;\">Razorpay\u2019s MoneySaver Export Account<\/span><\/a> <span style=\"font-weight: 400;\">solves these issues by offering a faster and more cost-efficient way to get paid from foreign clients.<\/span><\/p>\n<p><b>With this account, you can:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Open a global collection account in under 5 seconds\u00a0 no foreign entity needed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Receive payments from 180+ countries in 130+ currencies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Get local bank account details for USD, GBP, EUR and more\u00a0 clients can pay like a domestic transfer (ACH, SEPA, CHAPS, etc.)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Save up to 75% on charges compared to traditional bank transfers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Get automated digital FIRC in seconds\u00a0 no manual follow-ups<\/span><\/li>\n<\/ul>\n<div style=\"background: #f5faff; border-radius: 14px; padding: 30px; text-align: center; margin: 42px 0; box-shadow: 0 8px 20px rgba(26,115,232,0.08);\">\n<h2 style=\"color: #1a73e8; font-size: 24px; font-weight: bold; margin-bottom: 12px;\"><strong>Simplify Cross-Border Payments with Razorpay<\/strong><\/h2>\n<p style=\"color: #444; font-size: 16px; max-width: 720px; margin: 0 auto 18px; line-height: 1.6;\"><strong>Accept global payments faster with lower fees, instant compliance documents, and local collection accounts built for Indian exporters.<\/strong><\/p>\n<p><a style=\"display: inline-block; background: #1a73e8; color: #ffffff; padding: 14px 26px; font-size: 16px; font-weight: bold; border-radius: 10px; text-decoration: none;\" href=\"https:\/\/razorpay.com\/accept-international-payments\/bank-transfers\/\/?utm_source=blog&amp;amp;utm_medium=referral&amp;amp;utm_campaign=internationalpayments%22%3E%3Cem%3E%3Cstrong%3ERazorpay%E2%80%99s\">Razorpay MoneySaver Export Account<\/a><\/p>\n<\/div>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Exporting services can be a strong opportunity, but it works well only when compliance is handled correctly. Understanding <a href=\"https:\/\/razorpay.com\/gst-number-search\/\">GST<\/a> and <a href=\"https:\/\/razorpay.com\/blog\/foreign-exchange-management-act-fema\/\">FEMA<\/a> rules, using zero-rated benefits, choosing the right refund route and keeping proper documents help you protect your income.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With a clear process, you can avoid delays and build a reliable, profitable export business.<\/span><\/p>\n<h2><b>FAQs<\/b><\/h2>\n<h3><b>1. Is GST applicable on export of services from India?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">No. Export of services is treated as a zero-rated supply, so GST is not charged.<\/span><\/p>\n<h3><b>2. What are the key conditions for a service to qualify as an export under GST?<\/b><\/h3>\n<p><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> A service is treated as an export when:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The supplier is located in India<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The recipient is located outside India<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The place of supply is outside India<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payment is received in convertible foreign exchange (or INR where permitted)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The supplier and recipient are separate legal entities.<\/span><\/li>\n<\/ul>\n<h3><b>3. Is GST applicable on payment received in foreign currency for export of services?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">No GST is applied on the export value. However, bank charges and currency conversion fees may attract 18% GST, as per normal service <a href=\"https:\/\/razorpay.com\/learn\/income-tax-rules-regulations-startups-india-2019\/\">tax rules<\/a>.<\/span><\/p>\n<h3><b>4. What does &#8216;zero-rated supply&#8217; mean for service exporters?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">It means no GST is charged on the exported service, and the exporter is eligible to claim <a href=\"https:\/\/razorpay.com\/learn\/input-tax-credit-under-gst\/\">ITC<\/a> refunds on inputs and input services.<\/span><\/p>\n<h3><b>5. What is the timeline for realising export proceeds under FEMA?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Export proceeds must be realised and repatriated to India within 15 months from the date of export.<\/span><\/p>\n<h3><b>6. How can service exporters claim GST refunds?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Service exporters can claim GST refunds by filing <a href=\"https:\/\/razorpay.com\/learn\/what-is-gst-refund\/\">Form RFD-01<\/a> on the GST portal.\u00a0<\/span><\/p>\n<h3><b>7. Are there any exemptions for GST registration for service exporters?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes. Businesses that exclusively export services and have a turnover below the prescribed threshold (\u20b920 lakh, or \u20b910 lakh for Special Category States) are not required to register for GST.<\/span><\/p>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Is GST applicable on export of services from India?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"No. Export of services is treated as a zero rated supply under GST, so GST is not charged on the exported service.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What are the key conditions for a service to qualify as an export under GST?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"A service qualifies as an export when the supplier is located in India, the recipient is located outside India, the place of supply is outside India, payment is received in convertible foreign exchange or INR where permitted, and the supplier and recipient are separate legal entities.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Is GST applicable on payment received in foreign currency for export of services?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"No GST is applicable on the export value of services. However, bank charges and currency conversion fees may attract 18 percent GST as per applicable service tax rules.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What does zero rated supply mean for service exporters?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Zero rated supply means GST is not charged on exported services, and service exporters are eligible to claim refunds of input tax credit on inputs and input services used to provide the export service.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is the timeline for realising export proceeds under FEMA?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Export proceeds must be realised and repatriated to India within 15 months from the date of export, as per FEMA guidelines.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How can service exporters claim GST refunds?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Service exporters can claim GST refunds by filing Form RFD 01 on the GST portal along with the required supporting documents.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Are there any exemptions for GST registration for service exporters?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Yes. Businesses that exclusively export services and have an annual turnover below \u20b920 lakh, or \u20b910 lakh in Special Category States, are not required to register for GST.\"\n      }\n    }\n  ]\n}\n<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you provide services to clients abroad, GST applies differently than it does on domestic sales. Under GST, such transactions are treated as \u2018export of services\u2019, and classified as a zero-rated supply. That means you don\u2019t charge GST on your invoice and can still claim Input Tax Credit (ITC), which protects your margins and boosts<\/p>\n","protected":false},"author":86,"featured_media":25882,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[1067],"tags":[],"class_list":{"0":"post-25164","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-cross-border"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/25164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/86"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=25164"}],"version-history":[{"count":2,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/25164\/revisions"}],"predecessor-version":[{"id":26380,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/25164\/revisions\/26380"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/25882"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=25164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=25164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=25164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}