What is Export of Services?
Export of services means providing a service from India to a client outside India. Think of a Pune software house building an app for a US startup, a Kochi agency running ads for a UK brand, or a Delhi CA firm keeping books for a Dubai company. The term has a precise legal meaning in GST, and it also drives the FEMA reporting that leads to the EDF.
Why it matters for exporters
Under GST, a supply counts as an export of services only if all the conditions in Section 2(6) of the IGST Act are met: the supplier is in India, the recipient is outside India, the place of supply is outside India, payment is received in convertible foreign exchange (or in rupees where RBI permits), and the supplier and recipient are not merely establishments of a distinct person. If all are met, the supply is zero-rated, and you can export under LUT without paying IGST or pay IGST and claim a refund.
Under FEMA, an export of services triggers the EDF. From 1 October 2026, you declare your invoices on the EDF within 30 days from the end of the invoice month, and realise the money within 9 months from the invoice date (12 months for rupee invoicing). The two regimes are separate: the EDF does not change GST or income tax. See the five GST conditions and the complete EDF guide.
Example
Kite Analytics Pvt Ltd provides data dashboards to a Canadian retailer for USD 7,500 a month. All five Section 2(6) conditions are met, so it invoices under LUT with no IGST. For FEMA, its November 2026 invoice goes on an EDF to its AD bank by 30 December 2026.
Common confusion
A foreign client does not automatically make a supply an export. If the place of supply falls in India, as with many intermediary services, GST treats it as a domestic supply even though money comes from abroad.