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To prepare a GST-compliant invoice for an Indian software or IT service export, include the applicable particulars under Rule 46 of the CGST Rules, add the export endorsement that matches your tax route, and first confirm that the transaction qualifies as an export of services. A foreign customer alone does not establish export status. Classification, place of supply, payment conditions, refund eligibility and e-invoice coverage depend on the transaction and current rules.
First confirm what you are supplying
Do not classify every software contract the same way. The CBIC’s sectoral FAQ treats development activities such as design, programming, customization, adaptation, upgrades, enhancements and implementation as services. It describes pre-developed or pre-designed software supplied on storage media or made available through encryption keys as goods.
Use the contract and delivery model to identify the actual supply: for example, commissioned development or implementation work versus a pre-developed product delivered on media or through an access mechanism. A licence or right to use software may require closer analysis; the FAQ’s examples should not be treated as a rule for every licensing arrangement.
Check whether the service meets the export conditions
Under the five conditions summarized in the CBIC sectoral FAQ, a service is an export of services only if:
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- The supplier is located in India.
- The recipient is located outside India.
- The place of supply is outside India.
- The supplier receives payment in convertible foreign exchange.
- The supplier and recipient are not merely establishments of a distinct person under the relevant IGST Act explanation.
A foreign billing address does not establish all five conditions. Identify the actual recipient and the establishment receiving the service, and assess the place of supply under the applicable provision. The FAQ provides general observations for IT and IT-enabled services, but it does not settle every exception or service category. Related establishments, intermediary arrangements, unusual recipient structures and mixed supplies call for transaction-specific advice.
Choose the export tax route before drafting
Official CBIC guidance and GST portal GSTR-1 guidance describe two broad routes for zero-rated exports. Neither is automatically preferable; the route affects whether IGST is paid at export and what refund may be sought.
| Route | IGST at export | Refund sought | Key point |
|---|---|---|---|
| Export on payment of IGST | IGST is paid on the export supply. | Refund of IGST paid, subject to applicable rules and eligibility. | Check current refund and reporting requirements. |
| Export under bond or LUT | No IGST is paid on the export supply. | Refund of eligible accumulated input tax credit, subject to applicable rules and eligibility. | For a service export without payment of IGST, the CBIC FAQ says an LUT or bond is required under Section 16(3) of the IGST Act read with Rule 96A of the CGST Rules. |
These are broad route descriptions, not a complete filing or refund checklist. Confirm current eligibility, restrictions, return procedures and refund conditions before choosing or relying on either route. The route selected determines which Rule 46 export endorsement belongs on the invoice.
Include the Rule 46 invoice particulars
Use the current text of CGST Rule 46 when setting up an invoice template. Its general particulars include:
- Supplier’s name, address and GSTIN.
- A consecutive serial number unique for the financial year, within the prescribed character constraints, and the invoice issue date.
- Recipient identity and address particulars that apply to the transaction.
- Service accounting code and a description of the supply.
- Total value and other fields required in the circumstances under the rule.
For an export invoice, the rule also calls for the recipient’s name and address, delivery address and country of destination, as well as the applicable export endorsement. Confirm any other particulars relevant to your transaction against the live rule and its amendments.
Use the endorsement that matches the route
Rule 46 specifies the following export endorsement wording. Choose the one that matches the tax route; do not place both on the invoice unless the live rule and transaction require it.
- IGST paid: “SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS ON PAYMENT OF INTEGRATED TAX”
- Under bond or LUT without IGST: “SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”
These are the prescribed Rule 46 formulations. Check the live rule before using them in a template, particularly if it has changed since your template was last reviewed.
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Check the invoice deadline, reporting and e-invoice rules separately
Invoice timing
CBIC’s invoice rules state that an invoice for taxable services is generally issued within 30 days from the date of supply, subject to specified exceptions. The applicable deadline can depend on the transaction and rule, so do not use the general period as a substitute for checking the relevant exception.
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Return reporting
GST portal GSTR-1 guidance treats exports generally as zero-rated inter-State supplies and explains their reporting context. Follow the current return instructions for the exporter’s route and circumstances; the invoice itself does not replace the reporting obligations.
E-invoicing
Rule 46 provides for an IRN and embedded QR code where an invoice is issued through the prescribed e-invoice mechanism. The cited sources do not establish a particular exporter’s coverage, threshold or exemption. Verify current applicability independently rather than assuming that export status either requires or removes e-invoicing.
Quick Recap
A practical pre-issue checklist
- Match the invoice to the actual contracted supply and delivery method.
- Document how the transaction meets each export-of-services condition, including recipient, place of supply and payment.
- Select the IGST-paid or LUT/bond route after checking current eligibility and procedure.
- Populate the Rule 46 particulars, including the recipient, delivery address and destination country.
- Insert the exact export endorsement for the selected route.
- Check the applicable invoice deadline, return reporting and e-invoice status.
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