If your aggregate annual turnover crosses the notified threshold (currently ₹5 crore), e-invoicing applies to your export invoices just as it does to domestic B2B sales. Every export invoice must be reported to the Invoice Registration Portal (IRP), and an Invoice Reference Number (IRN) must be generated before the invoice is used. The type of export, whether under Letter of Undertaking (LUT)/bond or with payment of Integrated Goods and Services Tax (IGST), and whether the supply goes to a Special Economic Zone (SEZ) unit, determines what you fill in on the IRP.
Does e-invoicing apply to export invoices?
The mandate under Rule 48(4) of the Central Goods and Services Tax (CGST) Rules, 2017, covers exports, supplies to SEZ units and deemed exports, not just domestic B2B transactions. If your turnover crossed ₹5 crore in any preceding financial year, you are required to generate an e-invoice for every such transaction. Taxpayers exempt under Rule 48(4), such as banks and certain government bodies, remain exempt even for exports.
What details must an export e-invoice include?
Beyond the standard fields, e-invoices for export services require specific information to pass IRP validation. The following must be filled in.
- Supplier GSTIN and legal or trade name
- Export endorsement (‘Supply Meant for Export Under bond or LUT Without Payment of IGST’ or ‘Supply Meant for Export on Payment of IGST’)
- Recipient name and country (use ‘URP’ for the unregistered overseas buyer, as GSTIN does not apply)
- Port code and shipping bill details, where goods movement is involved
- Invoice currency code and the INR-equivalent taxable value
- Applicable tax treatment, zero-rated with or without IGST
How does LUT/bond change the e-invoice?
When you export under a LUT or bond without paying IGST, the supply type on the IRP must be set to ‘Export Without Payment’. The endorsement text must match accordingly. The LUT reference number is not a mandatory IRP field, but the tax treatment on the invoice must correspond to the LUT filed with your jurisdictional GST commissioner.
For an e-invoice for export with payment of IGST, set the supply type to ‘Export With Payment’ and charge IGST at the applicable rate. A refund of the IGST paid can be claimed through the GST portal once the shipping bill data is matched.
How are SEZ supplies handled in e-invoicing?
E-invoicing of supplies to SEZ units and developers follows the same e-invoicing rules as exports. On the IRP, the supply type is either ‘SEZ With Payment’ or ‘SEZ Without Payment’ depending on whether IGST is charged. Unlike regular exports, SEZ units hold a GSTIN, so the recipient GSTIN field must be filled correctly. Classifying an SEZ supply as a regular B2B transaction causes reconciliation mismatches in GSTR-1 and GSTR-3B.
How should foreign currency be recorded in an export e-invoice?
You can raise the invoice in a foreign currency. On the IRP, enter the currency code (USD, EUR, GBP or another accepted code) and the exchange rate used. The taxable value must be reported in INR, converted at the rate notified by CBIC through customs notifications for that date.
If no CBIC rate is available, use the RBI reference rate on the date of supply. Reporting the taxable value in foreign currency rather than INR is one of the most frequent IRP validation errors.
When is an e-Way bill required alongside an export e-invoice?
If the export involves movement of goods and the consignment value exceeds ₹50,000, an e-Way bill is needed. For sea or air exports, the e-Way bill covers movement up to the port of export. The port code, vehicle or conveyance number and shipping bill details link the e-Way bill to the export consignment. Services exports do not require an e-Way bill.
What are the common mistakes in export e-invoices?
These errors appear most often during IRP generation or post-filing reconciliation.
- Selecting ‘B2B’ as the supply type instead of ‘Export’ or ‘SEZ’
- Missing or incorrect export endorsement text
- Entering an Indian state as the destination instead of the buyer’s country
- Applying IGST when exporting under LUT or missing IGST when payment is intended
- Misclassifying SEZ supplies as regular exports
- Reporting the taxable value in foreign currency rather than INR
Conclusion
Export e-invoices involve more moving parts than domestic invoices. The supply type, endorsement, currency field, tax treatment and SEZ classification each feed into GST returns, refund claims and customs documentation. Errors on the IRP cannot always be corrected by amendment, and cancellation after goods have moved creates further complications.
TallyPrime supports export e-invoice generation with built-in fields for LUT/bond classification, SEZ supply type, foreign currency conversion and direct IRN generation, so each field maps correctly without manual intervention.
