Got an international order but client paid in INR from Indian bank account. Can I use LUT (0% GST)?

• LUT Eligibility: Yes, you can file this under an LUT at 0% GST. For the export of goods, physical movement out of India matters most; receiving foreign currency is not a strict condition like it is for services.

• Domestic vs. Export: It remains an export transaction. To ensure flawless compliance and avoid audits, make sure your Shipping Bill clearly reflects the overseas destination, and keep the customer's order history linked to the local INR payment entry to account for the lack of a foreign currency FIRC.

The existing answer is correct on the core rule: for goods export, physical movement out of India is what triggers zero-rating, not the currency of payment.

However, there is one important nuance for your situation. When an overseas client pays from an Indian bank account, your bank may classify it as a domestic rupee transaction rather than a foreign exchange inward remittance. This matters because:

- For GOODS export under LUT: The LUT covers zero-rating on the outward supply. Payment currency is not a condition under Section 2(5) of the IGST Act.
- Risk area: If the overseas buyer is using a liaison office or subsidiary account in India, GST officers may argue the buyer is an Indian entity and treat this as a domestic B2B sale.

To protect yourself: Obtain a written purchase order from the overseas incorporated entity (not the Indian account holder), ensure the Shipping Bill shows the overseas destination, and keep the bank statement showing the transfer descripttion.

For the full LUT filing process and export documentation checklist, this [GST export of goods LUT and refund procedure guide](https://taxgarden.in/blog/gst-on-export-of-goods-india-zero-rated-lut-refund-procedure-2026) covers zero-rated supply conditions and what happens if payment currency differs.