Article · 12 min read

Export of services and the LUT: zero-rating and refunds

CalcGuru · calcguru.in Free Intermediate India

An October 2026 explainer of when a service counts as an export under GST, how the Letter of Undertaking lets you invoice foreign clients without GST, and how to reclaim input credit that piles up when your output carries no tax.

  • File the LUT each financial year before billing foreign clients.
  • Payment must arrive in convertible foreign exchange for the export to be zero-rated.
  • Claim refunds of accumulated input credit.
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