How to Create GST Export Invoice in India — LUT vs IGST Payment 2026

What is a GST export invoice?

An export invoice is issued when goods or services are supplied to a buyer outside India. Under GST law, exports are treated as zero-rated supplies — meaning no GST is ultimately borne by the exporter, even though the invoice must still follow GST invoicing rules and declare the correct treatment.

Zero-rated supply explained

“Zero-rated” is different from “exempt.” An exempt supply has no GST and you can't claim ITC on related purchases. A zero-rated export has no GST charged to the buyer, but you can still claim or recover ITC on your inputs — which is exactly why exporters get to choose between two methods.

Method 1: LUT (Letter of Undertaking)

Most exporters file a LUT (Form GST RFD-11) once at the start of the financial year. This lets you export without paying IGST upfront — you simply quote your LUT number on the invoice. You still accumulate ITC on your inputs, which you claim as a cash refund periodically.

Method 2: Pay IGST, then claim refund

Alternatively, you can charge and pay IGST on the export at the time of supply, then claim a refund of that IGST from the government afterwards. This method ties up working capital upfront but skips the LUT filing requirement — most businesses prefer the LUT route once they're past their first export.

Mandatory fields for an export invoice

• Endorsement: “SUPPLY MEANT FOR EXPORT UNDER LUT WITHOUT PAYMENT OF IGST” (or the IGST-paid equivalent)
• LUT number and date (if applicable)
• Buyer's name, address, and country of destination
• Invoice value and line items in the agreed foreign currency, with the exchange rate to INR
• Port of export (for goods) and shipping bill details once available

How to create an export invoice with GSTClear

1. Select “Export invoice” as the invoice type when creating a new invoice.
2. Choose LUT or IGST-paid as your export method.
3. Pick the buyer's currency — GSTClear fetches a live exchange rate automatically.
4. Add the destination country and port of export.
5. Download a compliant export invoice PDF, in foreign currency with the INR equivalent shown.