Freelancer Invoicing for Foreign Clients: GST, FIRC, PayPal & Stripe Rules (2026)

Indian software developers, UI/UX designers, and copywriters working with US, UK, and international clients can legally bill with 0% GST if they follow export rules correctly.

The 5 Conditions for 'Export of Services'

Under Section 2(6) of the IGST Act, your work qualifies as a zero-rated export only when:

1. The supplier of service is located in India.
2. The recipient of service is located outside India.
3. The place of supply of service is outside India.
4. Payment is received in convertible foreign exchange (or INR via authorized Vostro accounts).
5. The supplier and recipient are not merely establishments of a distinct person.

How to Avoid 18% IGST: File an LUT (Letter of Undertaking)

If you are GST registered, you must file a Letter of Undertaking (Form GST RFD-11) on the GST portal at the beginning of each financial year. An LUT allows you to export services without paying 18% IGST upfront.

What is a FIRC / FIRA?

A Foreign Inward Remittance Certificate (FIRC) or Advice (FIRA) is issued by your authorized dealer bank (or payment processors like Stripe, Wise, or PayPal) proving that funds came from abroad. You must preserve FIRCs for 6 years for income tax and GST audits.