Do I charge GST on work for foreign clients?
Short answer: Usually not. Services provided to a client outside India are generally exports of services, which are zero-rated under GST. That means 0% GST, as long as the export conditions are met, including payment in foreign exchange or in rupees where RBI rules allow.
For your service to count as an export, broadly: you are in India, your client is outside India, the place of supply is outside India, you are paid in convertible foreign exchange or in rupees where the Reserve Bank of India permits, and you and the client are not simply branches of the same business.
If you are registered for GST, file a Letter of Undertaking (LUT) on the GST portal each financial year. With a valid LUT you invoice export clients at 0% without paying IGST first. Exports still count towards your aggregate turnover for the registration threshold.
Zero-rated does not mean “no paperwork”. Registered exporters still report these invoices in their GST returns.
Official sources
- CGST Act, 2017 and notifications, CBIC
- GST portal, Goods and Services Tax Network
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