Is GST applicable on services rendered to overseas clients?

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Ramit Saxena

72 Points Posted on 17 January 2025

If I provide a consultancy service to a client outside India, am I liable to charge or pay GST on it?

If this is exempted being outside India, what will be the HSN code used in the invoice?

Replies (3)

Quick Summary

This discussion clarifies whether GST is applicable when providing consultancy services to clients outside India. Generally, exports of services are considered zero-rated supplies under the IGST Act, meaning GST is not charged upfront. However, specific conditions must be met as defined in Section 2(6) of the IGST Act. Businesses can either pay IGST and claim a refund or submit a Letter of Undertaking (LUT) to avoid upfront payment. The SAC code for services remains the same regardless of the client's location, and a GST number is only required if the threshold limit is crossed.

prasad Nilugal

GST Practitioner & Accounts

8996 Points Posted on 17 January 2025

1) Export of Goods or services are Zero rated supply as per section 16(1) of the IGST Act ( please refer) , however you have to pay IGST and Claim refund or submit LUT ( Letter of Undertaking) .

2) Export of service should as per definition given in the section 2(6) of the IGST Act ( please refer) meaning thereby, you have to fulfill all the conditions in section 2(6) of the IGST Act , to consider export of service , and to take a benifit.

Take more opinion on this.

CA Raj Doshi

Practising CA

5649 Points Posted on 19 January 2025

1. SAC code of a service remains same irrespective of whether it's domestic or export sale

2. GST number needs to taken if the threshold limit of 20 lakhs is crossed else not required. If you take a GST number, then LUT shall be preferable.

Tax Garden

Tax Consultant

2004 Points Posted on 19 August 2026

Services provided to overseas clients generally qualify as EXPORT OF SERVICES and are zero-rated under GST, meaning you charge 0% GST to your client. But you still need to register under GST and comply:

CONDITIONS FOR ZERO-RATED EXPORT OF SERVICES (Section 2(6) IGST Act):
1. Supplier is in India
2. Recipient is outside India
3. Place of supply is outside India
4. Payment received in convertible foreign exchange (USD, EUR, GBP, etc.)
5. Supplier and recipient are not establishments of the same person

If all 5 conditions are met: 0% GST on your invoice, file GSTR-1 Table 6A as zero-rated export.

IF NOT ALL CONDITIONS MET:
Payment in INR from an overseas client sometimes falls outside condition 4 (RBI has guidance on permitted INR payments in export scenarios). Some intermediary services (where you act as a middleman connecting foreign buyer and Indian seller) may not qualify as export post the March 30, 2026 amendment to place of supply rules.

COMPLIANCE STEPS:
1. Register for GST (mandatory regardless of turnover for export of services)
2. File Letter of Undertaking (LUT) on GST portal before raising your first zero-rated invoice
3. Raise invoices to foreign client with note: Zero-rated supply of services under LUT
4. File GSTR-1 monthly/quarterly with Table 6A export data
5. File GSTR-3B: declare outward supply as zero-rated, claim ITC on inputs

GST compliance guide with export of services checklist: [GST compliance checklist for new businesses](https://taxgarden.in/blog/gst-compliance-checklist-new-businesses)