Zero-Rated Supply

What is Zero-Rated Supply?

Under India's GST (Goods and Services Tax) framework, a zero-rated supply is a supply of goods or services where the GST rate is 0%. This is different from an exempt supply — with zero-rated supplies, you can claim input tax credits.

Export of services from India is classified as a zero-rated supply under Section 16 of the IGST Act.

What It Means for Freelancers

If you're a GST-registered Indian freelancer exporting services to international clients:

• Your services are zero-rated — no GST is payable
• You can either:
  • File an LUT and export without paying IGST (recommended)
  • Pay IGST and claim a refund later (slower, ties up capital)
• You can still claim input tax credits on your business expenses

Conditions for Zero-Rated Status

Your services qualify as zero-rated exports if:

1. The supplier (you) is located in India
2. The recipient is located outside India
3. Payment is received in convertible foreign exchange
4. The supplier and recipient are not separate establishments of the same entity

How FaiirPe Helps

FaiirPe provides a FIRA certificate with every payment, which serves as proof of foreign exchange receipt — a requirement for claiming zero-rated status on your export invoices.

Related Terms

• LUT — declaration to export without paying IGST
• FIRA — proof of foreign remittance receipt