GST on Export of Services: Refunds, LUT and Zero-Rated Supplies

Shreyans Panchal | Last updated: 26 February 2026

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Exporting services from India is treated as a zero-rated supply under GST, meaning no tax is charged, and exporters can claim refunds. To qualify as an export, specific conditions must be met, including the supplier being in India, the recipient outside India, the service provided abroad, and payment received in foreign currency. Using a Letter of Undertaking (LUT) allows exporters to avoid paying GST upfront and then claiming it back, simplifying the process.

Introduction: What’s GST in the context of Exports? Goods and Services Tax (GST) is India’s indirect tax system that applies to almost all transactions involving goods and services. But when it comes to exports, things work a little differently. The government wants to promote exports, so it doe

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About the Author

Shreyans Panchal

CA Final Student

Finance and Taxation Professional with 3+years of experience in Indian Taxation.CA final student having excellent knowledge in Indian Startup ecosystem and Investment strategies.

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