Exporting · 6 min read · Updated Jun 20, 2026

GST on exports for small Indian sellers (zero-rated, LUT)

Good news for exporters: under GST, exports are zero-rated — you generally don't charge GST to your overseas buyer. The detail that trips people up is how to do that without locking up cash, and that's what the LUT is for.

What 'zero-rated' means

Exports are treated as zero-rated supplies: the outward sale carries no GST, and you can still claim back the GST you paid on inputs. The effect is that GST doesn't add to your export price.

Two ways to export under GST

Export under a Letter of Undertaking (LUT): file the LUT once for the year and export without paying IGST up front — the simplest path for most small sellers.
Pay IGST and claim a refund: you charge and pay IGST, then reclaim it. It works, but it parks your cash with the government until the refund clears.

The practical path for a small maker

If your turnover means GST registration makes sense, register, file an LUT, and export without IGST. Keep your export proofs (shipping bill, FIRC/BRC) so input-credit refunds and records line up cleanly.

Frequently asked

Do I charge GST to an overseas buyer?: No. Exports are zero-rated, so you don't add GST to the buyer's price. Under an LUT you also don't pay IGST up front.
Do I have to register for GST to export?: Not always, but registration lets you file an LUT and reclaim input GST, which usually benefits an exporting business. Check your turnover and product against current rules.

Keep reading

What is an Import Export Code (IEC), and do you need one? · Exporting
Documents required to export from India (small-parcel checklist) · Exporting
How to get paid by international buyers from India · Getting paid

Two ways to export under GST

Export under a Letter of Undertaking (LUT): file the LUT once for the year and export without paying IGST up front — the simplest path for most small sellers.

Pay IGST and claim a refund: you charge and pay IGST, then reclaim it. It works, but it parks your cash with the government until the refund clears.

Frequently asked

Do I charge GST to an overseas buyer?

No. Exports are zero-rated, so you don't add GST to the buyer's price. Under an LUT you also don't pay IGST up front.

Do I have to register for GST to export?

Not always, but registration lets you file an LUT and reclaim input GST, which usually benefits an exporting business. Check your turnover and product against current rules.