How to invoice international clients from India
Invoicing a client outside India isn't fundamentally different from invoicing domestically, but a few specific things — currency, GST treatment, and documentation — need to be handled correctly.
What to include on an export invoice
- Your business name, address, and GSTIN if registered.
- Client's name and address (full country address, since 'place of supply' matters for GST treatment).
- Invoice number, date, and a clear description of the service provided.
- Currency of the invoice — typically the currency you agreed with the client (USD, EUR, GBP are common), not automatically INR.
- If GST-registered: a note marking the invoice as an export of service, along with the applicable GST treatment (commonly zero-rated, subject to conditions).
Currency and exchange rate handling
Invoice in the currency you and the client agreed on — usually the client's local currency for larger, ongoing engagements. For your own records and tax filing, you'll need to convert the received amount to INR using the exchange rate applicable on the date of receipt (your bank or payment platform typically provides this).
FIRC and proof of receipt
For any inward foreign remittance, get a Foreign Inward Remittance Certificate (FIRC) or your bank's equivalent certificate — this documents that the money is a legitimate foreign payment, and you may need it for GST export claims, loan applications, or general income substantiation later.
GST on export invoices
Export of services is typically zero-rated under GST, meaning you can invoice without charging GST to the client, provided you meet the specific conditions (payment in convertible foreign exchange, place of supply outside India, and a few others). This is different from being exempt — you may still need to file the appropriate export declarations even at zero tax.