Keep your service exports genuinely zero-rated. AVS & Associates handles GST on export of services — LUT filing, refunds, and the conditions that protect your benefit.
Under the IGST Act, the export of services is treated as a zero-rated supply, which means no GST is ultimately borne on a genuine export. The benefit applies only when your transaction meets the legal definition of export of services under Section 2(6) — the recipient must be outside India, the place of supply must be outside India, and payment must be received in convertible foreign exchange. Getting GST on export of services right protects both your cash flow and your refund entitlement.
We help IT firms, consultants, agencies, and freelancers structure and document their exports correctly, so the zero-rating actually holds up under scrutiny.
Zero-rating can be claimed through either of two routes, and we help you pick the one that suits your cash position:
Exporters routinely lose the zero-rated benefit on technicalities. Supplying to an Indian establishment of a foreign company, receiving payment in rupees, or misreading the place-of-supply rules can each recharacterise an otherwise valid export as a taxable supply. We review your contracts and payment flows, confirm every export condition is satisfied, and keep your LUT current — so you never accidentally pay IGST on an export that should have been tax-free.
One of the most litigated areas in service exports is the treatment of intermediary services. Where a supplier is classified as an intermediary, the place of supply can default to India — which means the supply may fail to qualify as an export and GST becomes payable even though the client sits overseas. Many agencies and support-service providers are caught out by exactly this.
We examine the substance of your arrangement — whether you supply services on your own account or merely facilitate a supply between two other parties — and structure and document your contracts to support genuine export treatment where it is available. Getting this classification right is often the difference between clean zero-rating and an unexpected GST liability on your overseas revenue.
For service exporters, this is often the single largest GST issue affecting working capital. Beyond confirming the export conditions, we file your refund claims promptly and follow them through with the department, so accumulated input tax credit does not stay locked up. The result is a zero-rated position that holds and working capital that keeps moving.
Service exporters frequently also need GST registration in Noida, GST consulting services, and IEC code registration — and, where individuals are involved, advice on tax for remote workers in India.
Our Strength Lies in Providing Real-World Practical Solutions
We file and renew your LUT on schedule each year and submit refund claims promptly, so your zero-rating and your cash flow are never interrupted.
Transparent fees, with correct structuring and timely refund claims that free up the working capital otherwise locked in IGST.
LUT filing, export structuring, refund claims, and place-of-supply review — your complete export-GST position handled in one place.
Led by founder CA Vishnu Agrawal and run by a five-partner team, AVS & Associates is a peer-reviewed practice with more than 25 years of experience. We uphold the highest ethical and professional standards on every engagement, with complete client confidentiality.
Export of services is zero-rated under the IGST Act, so no GST is ultimately borne, provided the transaction meets the legal conditions for export of services.
A Letter of Undertaking lets you export services without paying IGST upfront. It must be filed and renewed annually with the GST department.
Broadly, the supplier must be in India, the recipient outside India, the place of supply outside India, payment received in convertible foreign exchange, and the parties not mere establishments of the same person.
Yes. Exporters can claim a refund of accumulated input tax credit, or of IGST paid on exports, depending on the route chosen. We file these claims for you.
Payment in convertible foreign exchange is generally required for a service to qualify as an export. Rupee receipts can jeopardise zero-rating, so we review your payment terms carefully.