Introduction
An export invoice is a tax-compliant commercial document an Indian exporter issues to an overseas buyer for goods or services sold internationally. It must follow GST rules under Section 31 of the CGST Act and include specific mandatory fields under Rule 46, including an 8-digit HSN/SAC code, place of supply, zero-rated declaration, LUT reference number, and INR equivalent at the RBI reference rate.
In this article, we cover what an export invoice is, why it matters, what it must contain, how the GST routes work, and everything else you need to issue a compliant one.
Not sure which template applies to your situation? Use this quick selector:
- Shipping goods overseas, no IGST charged: Export Invoice Under LUT
- Shipping goods overseas, IGST paid upfront: Export Invoice With IGST Payment
- Providing services to a foreign client under LUT: Export of Services Invoice Under LUT
- Supplying to an SEZ unit or deemed export recipient: SEZ / Deemed Export Invoice
What is an Export Invoice?
An export invoice is a detailed document that an Indian business (exporter) issues to the recipient importer in a different country, when selling goods internationally. An export invoice is an official proof of the transaction, laying out exactly what was sold, to whom, for what price, and under what conditions. It also states how much the importer owes to the exporter.
Three provisions of the CGST framework govern exactly what your export invoice must look like and when it must be issued:
- Section 31, CGST Act: Creates the legal obligation to issue a tax invoice for every taxable supply, including exports.
- Rule 46, CGST Rules: Lists every mandatory field the invoice must contain, from your GSTIN and the buyer's foreign address to the 8-digit HSN code and the zero-rated declaration text.
- Rule 96 / Rule 96A, CGST Rules: Define the two routes available to you. Rule 96 covers export with IGST payment; Rule 96A covers export under LUT where no IGST is charged.
Knowing these references is useful because GST auditors, banks processing your FIRA, and customs officials all work from these rules when validating your invoices.
Why is an Export Invoice needed?
The importance of export invoice goes beyond simply meeting legal requirements. This document is fundamental for Indian businesses engaged in international trade, serving several critical functions:
- Legal Proof: A commercial invoice for export is official proof that proves a business has made a sale. It clearly shows what was sold, its cost, and the agreed terms between an Indian business and a foreign buyer. It serves as a crucial document to refer to in the event of any disagreements between the parties.
- Smooth Customs Checks: The information on a commercial invoice for export is of utmost importance to customs officials in both India and the destination country, enabling them to understand the shipment and calculate any applicable taxes or duties. This means your goods clear through customs without a fuss.
- Help with Insurance Claims: In case the goods get lost or damaged on their journey, the export invoice serves as evidence to help you make a claim with your insurance company to get your money back.
- Fair Tax and Duty Calculation: Government departments use the export invoice to work out the correct taxes and duties on your exported goods. This keeps everything fair and open in international trade.
- Getting the Money Home: If any Indian business has trouble getting paid from abroad, the export invoice can be used when talking to officials of the Reserve Bank of India (RBI) to get help bringing your money back into the country.
- Record-keeping: The export invoice is a crucial record for both the exporter’s accounts and for the buyer’s. It’s also great for tracking the performance of your international sales.
- Getting your FIRA and GST refunds: Your bank needs the invoice number and date on your export invoice to match each incoming foreign payment for FEMA compliance. That matching process is what allows them to issue the Foreign Inward Remittance Advice (FIRA) you need to claim your GST refunds. A missing field or a date mismatch on the invoice stalls the entire chain, and your refund waits.
Time limit to raise an Export Invoice
According to the rules of the Central Goods and Services Tax Act, 2017, the time limit to raise export invoices in different cases would be:
| When the supply involves the movement of goods | When the supply involves the provision of services | For goods sent for sale on an approval basis |
|---|---|---|
| The invoice should be issued before or at the time of removal of the goods for delivery. | The invoice should be issued before the provision of service or within a specified time (60 days) after the provision of services. | The invoice must be issued at the earlier of the following two cases: If approval is received within 6 months, the invoice date is the approval date. If approval is not received within 6 months and the buyer hasn’t intimated refusal, the invoice date is the expiry of the 6 months. |
Two more time-limit rules that affect exporters from FY 2025-26 onwards:
- The 30-day e-invoice reporting window: If your Annual Aggregate Turnover exceeds Rs 10 crore, every export invoice must be reported to the Invoice Registration Portal (IRP) within 30 days of its date. This rule came into effect on April 1, 2025. Miss the window and the IRP rejects the upload, the invoice then has no IRN, which means it is not GST-valid. This applies to export invoices the same way it applies to domestic B2B invoices.
- CGST Rule 47 is the statutory basis for the 60-day time limit on service invoices. It is worth knowing because GST officers reference it during audits, and citing it correctly in any correspondence signals that you know what you are doing.
Types of Export Invoices
Here is a quick comparison of all five invoice types before we go into each one in detail:
| Invoice Type | Purpose | When Issued | Mandatory for? | Typical Use Case |
|---|---|---|---|---|
| Commercial Invoice | Primary bill of sale | At time of export | All goods and services exports | Indian IT firm invoicing a US client for software services |
| Proforma Invoice | Advance quotation before order confirmation | Before confirmed order | Not mandatory, but standard practice | Buyer needs it to open a Letter of Credit with their bank |
| Consular Invoice | Commercial invoice certified by the importer's consulate in India | Alongside commercial invoice | Country-specific | Pharma export to certain Gulf or African nations |
| Legalised Invoice | Apostille or notarised invoice | Alongside commercial invoice | Country-specific (mainly Middle East) | Machinery export to UAE requiring notarisation |
| Customs Invoice | Specific format required by the importing country's customs | At time of export | Importing-country requirement | Export to the US above certain customs threshold values |
- Commercial Invoice: A commercial invoice for export is the most common document that serves as the actual bill of sale from the Indian seller to the foreign buyer. It provides all the details of the transaction, including the goods sold, quantities, prices, and terms, which are essential for customs clearance and payment processing.
- Proforma Invoice: Issued by the Indian exporter before a confirmed order, proforma invoice is a detailed quotation that outlines the estimated costs, terms of sale, and payment conditions, allowing the foreign buyer to make informed decisions, secure import licenses, or arrange financing prior to placing a firm order.
- Consular Invoice: Required by certain importing countries, this is a commercial invoice that needs to be certified by the consulate of the importing nation located in India. Its purpose is to verify the authenticity, value, and origin of the goods, helping the importing country ensure proper duty assessment and compliance with their specific import rules.
- Legalised Invoice: A legalised invoice is similar to the consular one, but it differs in format flexibility. This type of invoice is usually required in Middle Eastern countries. While it doesn’t follow a predetermined format like the consular invoice, it serves a similar purpose of verifying the document’s authenticity for customs clearance.
- Customs Invoice: In some cases, the customs authorities of the importing country might require a specific invoice format provided by them, rather than a standard commercial invoice. This document typically contains details similar to a commercial invoice but might include additional information tailored to their particular customs procedures, aiding in their assessment and duty collection.
In addition to the standard export invoice types, Indian exporters must issue a GST-compliant tax invoice when supplying goods or services for export. This invoice is crucial for complying with GST regulations. It also enables exporters to claim Input Tax Credit (ITC) on export-related expenses.
So, to claim these benefits under the GST regime, exporters must comply with one of the following three regulatory frameworks:
- Export with Payment of IGST: In this method, the exporter charges Integrated GST (IGST) on the invoice and remits it to the government. The tax paid can subsequently be claimed as a refund. The commercial invoice must indicate the IGST amount and include a declaration “Export with payment of IGST under Rule 96 of the CGST Rules.”
- Export under Bond or LUT (without Payment of IGST): Under this, the exporter does not charge IGST but is required to furnish a Bond or Letter of Undertaking (LUT) to the GST authorities, declaring compliance with export regulations. Regular exporters prefer this option as it avoids the need for upfront tax payments. The commercial invoice must contain a note stating that the supply is made under LUT without payment of IGST.
- Deemed Exports: Deemed exports refer to supplies made within India to notified entities or projects, such as SEZs, that are treated as exports under GST law, even though the goods do not physically leave the country. In such cases, GST is charged on the transaction, and a refund can be claimed by either the supplier or the recipient. A standard tax invoice is issued for these transactions, rather than a traditional export invoice.
Export invoice format under GST: LUT vs IGST
If you have been searching for export invoice under GST or export invoice with IGST vs LUT, this is the comparison you need. Both routes are legal. The practical difference is cash flow and for most exporters, the answer is clear.
| Aspect | Export Under LUT (Rule 96A) | Export With IGST Payment (Rule 96) |
|---|---|---|
| IGST on invoice | Nil | Charged at applicable rate (typically 18%) |
| Mandatory declaration text | "SUPPLY MEANT FOR EXPORT UNDER LUT WITHOUT PAYMENT OF INTEGRATED TAX" | "SUPPLY MEANT FOR EXPORT WITH PAYMENT OF INTEGRATED TAX UNDER RULE 96" |
| How you get your money back | Nothing to recover, no tax was paid | Auto-refund after GSTR-1 and shipping bill match, typically 4 to 6 weeks |
| LUT requirement | Yes, valid Form RFD-11 for the current financial year | Not required |
| Working capital impact | None | 18% of invoice value is locked up until the refund lands |
| Best suited for | The vast majority of Indian exporters and all service exporters | Exporters who cannot qualify for LUT, an uncommon situation |
The LUT route is the default recommendation for almost every Indian exporter. The only meaningful reason to use the IGST route is if you have been disqualified from holding an LUT, which typically requires a prosecution for tax evasion exceeding Rs 2.5 crore.
Contents of an Export Invoice
Use the checklist below for every export invoice you issue.
| Field | What to include |
|---|---|
| Exporter legal name | Exactly as it appears on your GST registration |
| Exporter GSTIN | Your 15-digit GST Identification Number |
| Exporter complete address | Must match the principal place of business on your GST certificate |
| Exporter IEC code | 10-digit Import Export Code issued by DGFT |
| Invoice number | Continuous series, max 16 characters including hyphens, resets each financial year (e.g. EXP/2026/001) |
| Invoice date | DD/MM/YYYY format |
| Importer legal name | xxx |
| Importer complete foreign address | For services exports, include the client's tax ID if available |
| HSN code (goods) or SAC code (services) | 8-digit ITC-HS for all goods exports. 4 or 6-digit is not accepted by customs. 6-digit SAC for services. |
| Description of goods or services | _ |
| Quantity and unit of measure | xxx |
| Total invoice value in foreign currency | xxx |
| Exchange rate | RBI reference rate on the invoice date, check rbi.org.in |
| Total invoice value in INR equivalent | Both the rate and the INR amount must appear |
| Place of supply | The foreign country name, not the Indian port or city |
| Zero-rated declaration text | Verbatim |
| LUT reference number | Required if using the LUT route (format: AD180326XXXXXXX) |
| Tax breakup | Nil for LUT route; IGST amount for IGST route |
| Shipping bill number and date | For goods exports, added after the shipping bill is filed |
| Authorised signatory | Name and physical or digital signature |
The exact declaration text, do not paraphrase:
GST validation systems and customs scrutiny rely on the precise statutory wording. A paraphrased version, "exported without GST" or "under LUT", is one of the most common reasons export invoices attract queries from banks and GST authorities.
For export under LUT:
"SUPPLY MEANT FOR EXPORT UNDER LUT WITHOUT PAYMENT OF INTEGRATED TAX"
For export with IGST:
"SUPPLY MEANT FOR EXPORT WITH PAYMENT OF INTEGRATED TAX UNDER RULE 96"
Copy these exactly. Include them in your accounting software template so they appear automatically on every export invoice.
Annotated sample export invoice: Walk through every field
Scenario: A Bengaluru-based IT consulting firm invoices a US client for software consulting services worth USD 5,000 under LUT.
Exporter details (Fields 1 to 4): Write your legal name exactly as it appears on your GST registration certificate, not a shortened version or trade name. Your complete address must match the principal place of business listed on your GST certificate. Include your 10-digit IEC code below the GSTIN.
Invoice number (Field 5): A sequential series like EXP/2026/001 works well. The number cannot exceed 16 characters, must be unique within the financial year, and cannot restart mid-year. Start a fresh series on April 1 each year.
HSN or SAC code (Field 9): For IT consulting services, the correct SAC code is 998314. For goods exports, you need the full 8-digit ITC-HS code — for example, 6217 is a valid domestic GST code for garments, but for export it must be the full 62171010. Most accounting software defaults to 6-digit HSN; override this manually for every export invoice.
Exchange rate and INR equivalent (Fields 13 and 14): On the invoice date, look up the RBI Reference Rate at rbi.org.in/scripts/ReferenceRateArchive.aspx. If the USD/INR rate is 83.50, your INR equivalent for USD 5,000 is Rs 4,17,500. Both numbers, the rate and the INR total, must appear on the invoice. Missing either one is a common reason FIRA requests are delayed.
Place of supply (Field 15): Write "United States of America." Not "New York," not "Mumbai port," not "foreign." The place of supply for an export of services is the recipient's country, determined under Section 13 of the IGST Act.
Zero-rated declaration (Field 16): For this scenario: "SUPPLY MEANT FOR EXPORT UNDER LUT WITHOUT PAYMENT OF INTEGRATED TAX." Check that this appears in full on the PDF your accounting software generates, some platforms truncate long narration fields.
LUT reference (Field 17): Find your LUT reference number on the GST portal under Services > User Services > View/Download LUT Certificate. It follows the format AD180326XXXXXXX where the digits encode your jurisdictional details and filing date.
Most common mistakes at each field:
- HSN at 6-digit instead of 8-digit for goods exports
- INR equivalent or exchange rate missing from the invoice
- Declaration text paraphrased rather than reproduced verbatim
- Indian city or port written as the place of supply
- SAC code used for goods, or HSN code used for services
SEZ and Deemed Export Invoice Formats: Special rules
SEZ Supply Invoice Format
Supplies to SEZ units and SEZ developers are zero-rated under Section 16 of the IGST Act — even though the goods or services move within India. The invoice format is the same as an export under LUT, with the SEZ unit's legal name and GSTIN as the recipient.
The mandatory declaration text for SEZ supplies is:
"SUPPLY MEANT FOR SEZ UNIT UNDER LUT WITHOUT PAYMENT OF INTEGRATED TAX"
Two things that differ from a standard export invoice: you do not need a shipping bill because the movement is within India, not customs-bound. And you will need an endorsement from the SEZ's Authorised Officer as part of the transaction record. The legal framework sits under CGST Rule 89 and the SEZ Act 2005.
Deemed Export Invoice Format
Deemed exports cover supplies to Advance Authorisation holders, Export Oriented Units, EPCG licence holders, and specified government mega projects. Goods stay in India, they are just supplied to entities that use them for export production.
Use the standard Rule 46 invoice format with this declaration:
"SUPPLY MEANT FOR DEEMED EXPORT UNDER NOTIFICATION 48/2017-CT"
Unlike SEZ supplies, deemed exports are not zero-rated, IGST is charged on the invoice and a refund is claimed afterwards by either the supplier or the recipient. The supplier-side refund route is more common in practice. Keep the procurement certificate from your recipient carefully, it is mandatory documentation for the refund claim.
Setting Up Export Invoices in Tally Prime, Zoho Books, and Vyapar
Most exporters generate invoices through accounting software rather than from scratch. Here is how to configure each of the main platforms correctly.
Tally Prime
- Go to Features (F11), enable GST, and turn on the Export Invoice option under statutory features.
- Create a Ledger for your foreign buyer under Sundry Debtors, set the Country field to the buyer's country.
- Create a dedicated "Export Sales" voucher type under Vouchers > Sales (F8) to keep export transactions separate.
- Set the GST rate to 0% for the LUT route, or the applicable IGST rate if you are paying IGST upfront.
- In the Narration field, enter the full verbatim declaration text and your LUT reference number.
Before you send the invoice, open the PDF Tally generates and check three things: the HSN code is 8-digit (Tally defaults to 6-digit), the INR equivalent and exchange rate appear (Tally does not auto-calculate these unless you have an FX integration), and the declaration text is not cut off.
Zoho Books
Set Place of Supply to the buyer's foreign country. Set the Tax field to "Out of Scope" or "Zero-Rated" depending on your Zoho configuration. Add your LUT reference number in the Tax Notes or invoice Notes field, this does not auto-populate and needs to be entered manually each time.
Vyapar, Refrens, and Razorpay Invoice
Select the Export Invoice template, set Tax to 0%, and manually add the HSN or SAC code, most of these platforms do not auto-fill 8-digit HSN for exports. Enter the LUT reference number in the additional notes section. Download the PDF and verify the declaration text before sending it to your buyer.
How are packing and shipping dealt within an Export Invoice?
Including details related to packing and shipping in an export invoice is not just a requirement but also helps build trust and ensures compliance in international trade. Both of these details enable a smooth export process.
1. Packing Details: These details help customs and buyers verify contents and ensure proper transit packaging. Packing details include the following:
- Type of Packaging: E.g., boxes, crates, pallets.
- Number of Packages: Total count.
- Dimensions and Weight: Size and both gross/net weight per package.
- Markings and Labels: Identifying marks like barcodes or batch numbers.
- Description of Contents: A summary of each package.
2. Shipping Details: Shipping details includes transport and delivery information, like following:
- Mode of Transport: Sea, air, road, or rail.
- Carrier Details: Name of the shipping line or airline.
- Shipping Date: Date of dispatch from the origin port.
- Port of Loading and Destination: Departure and arrival ports.
- Bill of Lading (BOL) or Airway Bill Number: Unique shipment identifier.
Simplify Export Invoicing with Xflow
Issuing a compliant export invoice is step one. Getting paid and completing the compliance loop is where things slow down for most exporters. Your bank needs the invoice reference to match each inward remittance before they can issue a FIRA — and without the FIRA, your GST refund claim stalls.
Is your exporting business struggling with delayed payments, invoice mismatches, or compliance hurdles when dealing with international clients?
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Frequently asked questions
A commercial invoice is the primary type of export invoice used in international trade. Every export invoice is a commercial invoice, but not every commercial invoice qualifies as an export invoice unless it contains the required export-specific and regulatory details.
GST does not need to be paid on export invoices in most cases because exports are treated as “zero-rated supplies” under Indian GST law. In fact, exporters can claim a refund of the unutilised Input Tax Credit (ITC) on taxes paid for inputs and input services used in the export of goods and services.
E-invoicing is not mandatory for everyone. E-invoicing is not applicable to government departments or local authorities. Additionally, Special Economic Zones (SEZs) are exempt from generating e-invoices. GST e-invoice limit for turnover more than Rs. 5 Crores applies from 1st August 2023.
Yes, an export invoice is mandatory for service exports to document the transaction and claim GST benefits.
An LUT (Letter of Undertaking) allows exporters to export goods/services without paying IGST and must be referenced on the export invoice.
An export invoice is the tax document an Indian exporter issues for any international supply of goods or services, governed by CGST Rule 46. A compliant invoice must include 20 mandatory fields, among them the 8-digit HSN or SAC code, INR equivalent at the RBI reference rate, the foreign country as place of supply, and the verbatim zero-rated declaration text for whichever GST route you are using.
Free templates in Word, Excel, and PDF are available in the templates section above, covering goods export under LUT, goods export with IGST, services export under LUT, SEZ supply, and deemed export scenarios. Each template is pre-filled with sample data and the correct declaration text so you can adapt it for your business immediately.
A services export invoice uses a 6-digit SAC code instead of an 8-digit HSN code, does not require a shipping bill number, and must declare the foreign country as the place of supply under Section 13 of the IGST Act. The LUT declaration text must read exactly: "SUPPLY MEANT FOR EXPORT OF SERVICES UNDER LUT WITHOUT PAYMENT OF INTEGRATED TAX."
Under LUT, no tax appears on the invoice and no refund is needed, your cash flow is unaffected. Under the IGST route, you charge and pay tax upfront and wait 4 to 6 weeks for an auto-refund after your GSTR-1 and shipping bill match. For the vast majority of Indian exporters, LUT is the right choice, the IGST route only makes sense in the rare situation where you are disqualified from holding an LUT.
All goods exports require the full 8-digit ITC-HS code, 4-digit or 6-digit is not accepted by customs even if it is valid for domestic GST invoices. For services, use the 6-digit SAC code. Most accounting software defaults to 6-digit HSN; you will need to override this manually for every export invoice until your template is updated.
Enable Export Invoice under F11 features, create the buyer as a foreign-country ledger, use a Sales voucher with GST set to 0% for LUT exports, and enter the full verbatim declaration text and LUT reference number in the Narration field. Always verify the final PDF before sending and check that HSN is 8-digit, INR equivalent is shown, and the declaration text has not been truncated.
A commercial invoice is the standard bill of sale that doubles as a GST tax invoice for most exports. A customs invoice follows a format prescribed by the importing country's customs authority and is required in specific markets such as the US above certain shipment values. A consular invoice is certified by the importing country's consulate in India and is required mainly for Middle Eastern and some Latin American markets. In most modern Indian export transactions, a well-structured commercial invoice satisfies all three requirements at once, as long as it includes all CGST Rule 46 fields plus any importing-country additions.
Yes, businesses above the Rs 5 crore AATO threshold must generate e-invoices for export supplies, and from April 1, 2025, those above Rs 10 crore must report each invoice to the IRP within 30 days of the invoice date. SEZ supplies follow the same e-invoicing rules as other exports. Refer to the e-invoice limit guide for the full details on turnover thresholds and the 30-day reporting window.
