Export vs domestic invoice
An export invoice is a regular tax invoice with a few additions. Here is what changes when you bill a client outside India.
| Field | Domestic | Export |
|---|---|---|
| Invoice currency | INR only | Foreign currency + INR equivalent |
| Exchange rate | Not needed | RBI reference rate (mandatory) |
| Tax type | CGST + SGST or IGST @ 18% | IGST @ 0% (under LUT) |
| Place of supply | State name + code | 'Outside India' / country name |
| Export declaration | Not needed | Mandatory endorsement text |
| LUT reference | Not needed | ARN + validity dates |
| Bank details | IFSC sufficient | SWIFT/BIC mandatory |
| Client's GSTIN | Required | Not applicable |
| Client's country | Optional | Required |
What an export invoice looks like
Here is a complete export invoice with all mandatory fields. The annotations on the right show what is export-specific.
Aditi Design Studio
Aditi Sharma
Mumbai, Maharashtra (27) 400001
PAN: ABCPS1234K
GSTIN: 27ABCPS1234K1Z5
Tax Invoice
ADS/NB/2026/05/003
Date: 16 May 2026
Due: 15 Jun 2026
PO: NB-2026-0412
Bill to
Northbeam Inc
548 Market St, San Francisco, CA 94104
United States
Place of supply: Outside India
Currency: USD
Exchange rate: 1 USD = ₹84.50
(RBI reference rate, 16 May 2026)
INR equivalent: ₹8,45,000.00
US Dollars Ten Thousand Only
Supply meant for export under Letter of Undertaking without payment of IGST
LUT ARN: RD2704250012345 dated 01/04/2025, valid till 31/03/2026
Whether tax is payable under reverse charge: No
Bank details
Every field your export invoice needs
Complete checklist. Fields marked with * are export-specific (not needed on domestic invoices).
Your details (supplier)
- Legal business name
- Full address with state name and state code
- GSTIN (15 digits)
- PAN
- Contact (email, phone)
Invoice identification
- Invoice number (sequential, max 16 characters)
- Invoice date
- Due date / payment terms
- PO number or project reference (if client requires)
Client details (recipient)
- Legal business name
- Full address including country *
- Client’s tax ID (VAT for EU, EIN for US — not mandatory under Indian law, but speeds up payment)
Service details
- SAC code for each line item
- Clear description of services (not just “consulting”)
- Quantity/hours, rate, and amount
- Period of service (recommended)
Tax and totals
- Taxable value in foreign currency *
- IGST rate and amount (show “IGST @ 0%: Rs. 0.00” under LUT) *
- Total in foreign currency *
- RBI exchange rate with date and source *
- INR equivalent of total amount *
- Amount in words
- Place of supply: “Outside India” or country name *
Declarations
- Export endorsement: “Supply meant for export under LUT without payment of IGST” *
- LUT ARN and validity period *
- “Whether tax is payable under reverse charge: No”
Payment details
- Bank name and branch
- Account number
- IFSC code
- SWIFT / BIC code *
- Payment link (Wise, Razorpay, etc.)
SAC codes for freelance services
SAC (Services Accounting Code) classifies your service for GST. You need it on every line item if you are GST-registered. Here are the codes freelancers use most.
| Service | SAC Code |
|---|---|
| Software development | 998314 |
| Web/app development | 998313 |
| UI/UX design | 998314 |
| Graphic/brand design | 998396 |
| Content writing | 998314 |
| Digital marketing / SEO | 998361 |
| Management consulting | 998312 |
| Video editing / production | 999612 |
| Translation | 998596 |
| Photography | 998592 |
Not sure which code? If you build software, design interfaces, or write content for digital products, use 998314. It covers most IT and digital creative work. Your CA can confirm if you are unsure.
What your foreign client actually needs
Your export invoice serves two audiences. Indian GST compliance (for you and your CA) and your client’s accounts payable team (for payment processing). Here is what each side cares about.
| Field | Your CA cares | Client AP cares |
|---|---|---|
| Amount in their currency | — | ✓ |
| Wire transfer details (SWIFT) | — | ✓ |
| PO number / project reference | — | ✓ |
| Payment terms (Net 30) | — | ✓ |
| Clear service description | — | ✓ |
| GSTIN | ✓ | — |
| SAC code | ✓ | — |
| LUT ARN | ✓ | — |
| INR equivalent | ✓ | — |
| Export declaration text | ✓ | — |
| Place of supply | ✓ | — |
| Exchange rate (RBI) | ✓ | — |
| Invoice number + date | ✓ | ✓ |
| Your legal name | ✓ | ✓ |
For US clients: Submit a W-8BEN form before your first invoice. Without it, they may withhold 30% of your payment as US tax. This is a one-time form, not something you put on every invoice.
If you are not GST registered
If your annual turnover is below Rs 20 lakhs and you have not voluntarily registered for GST, your export invoice is simpler:
- Issue a regular commercial invoice (not a “Tax Invoice”)
- No GSTIN, no SAC code, no IGST line
- No LUT (LUT requires GST registration)
- No export declaration text
- Include: your name, PAN, client details, description, amount in their currency, bank details with SWIFT
- Add a note: “Supplier is not registered under GST (turnover below threshold)”
Everything else (currency, SWIFT code, payment terms) remains the same as a registered export invoice.
Common format mistakes
Missing IGST @ 0% line
Show “IGST @ 0%: Rs. 0.00” explicitly. Do not just omit the tax line. An auditor needs to see that zero-rating was intentional.
No dual currency display
Your invoice must show both the foreign currency amount AND the INR equivalent. One without the other is non-compliant.
Vague service description
“Consulting services” is not enough. Write what you actually delivered: “Brand identity design + responsive website development (May 2026)”.
Missing SAC code
Required for all GST-registered suppliers. Add it to each line item. Most freelancers need just one code (usually 998314).
No exchange rate source
Show the rate, the source (RBI), and the date. This prevents disputes during audit about which rate was used.
Invoice number too long
Maximum 16 characters per GST rules. Keep your numbering format compact: PREFIX/CLIENT/YY/MM/NNN works well.
Missing SWIFT/BIC code
The number one reason for payment delays. Without it, your client’s bank cannot route the wire transfer. Always include it.
Do you need e-invoicing?
E-invoicing (generating an IRN from the Invoice Registration Portal) is mandatory only if your aggregate annual turnover exceeds Rs 5 crore in any financial year from 2017-18 onwards.
Most freelancers are well below this threshold. If you are under Rs 5 crore turnover, you do NOT need e-invoicing. A regular PDF invoice with all the fields listed above is fully compliant.
If you ARE above Rs 5 crore: you must generate an IRN before issuing the invoice, and the signed QR code from the IRP must appear on the invoice. Your CA or invoicing software handles this.
Skip the manual formatting
Pick your client’s country, enter line items, and the export invoice generates itself. SAC codes, LUT declaration, dual currency, SWIFT details. All in the right format.
Create your first export invoice freeHave more questions? vasundhra@evrything.online