Export Invoicing Under GST: Letter of Undertaking (LUT) vs IGST Payment with Refund

Understanding Zero-Rated Export Supplies

Under Section 16 of the IGST Act, export of goods and services is classified as a 'zero-rated supply'. Exporters have two distinct pathways to execute overseas billing:

1. Export under Letter of Undertaking (LUT): Supply goods/services without paying IGST, then claim unutilized Input Tax Credit refunds via Form RFD-01A.
2. Export with IGST Payment: Pay integrated tax at standard rates upon invoice generation, with automatic customs/EDC refund processing upon shipping bill clearance.

Foreign Currency Invoicing & BRC/FIRC Tracking

Exporters must record invoices in foreign currencies (USD, EUR, GBP) while maintaining statutory INR equivalents based on CBIC exchange rates. Relaso Billing Pro handles dual-currency display, LUT tracking, and bank realization certifications seamlessly.