Is GST applicable on services rendered to overseas clients?

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. 

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.

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)