What is IGST?
IGST stands for Integrated Goods and Services Tax. It is levied by the central government under the IGST Act, 2017, on supplies that cross state lines within India and on imports. Exports are also dealt with under the IGST Act, which is why IGST is the GST component that service exporters encounter. Revenue from IGST is shared between the centre and the destination state.
Why it matters for exporters
Export of services is a zero-rated supply under Section 16 of the IGST Act. That gives you two choices. You can export under an LUT (Form GST RFD-11) with no IGST on the invoice, and add the line "Supply meant for export under LUT without payment of IGST". Or you can charge and pay IGST on the export invoice and then claim a refund of that IGST. Most service exporters prefer LUT because it avoids locking up cash.
The conditions for an export of services, including the place of supply being outside India and payment in convertible foreign exchange, are in Section 2(6) of the same Act. If one condition fails, the supply may be treated as domestic, and GST would apply in the normal way. IGST is entirely separate from your EDF obligations. Our GST invoice generator and export invoice generator handle both domestic and export formats.
Example
Trident Consulting LLP, registered in Maharashtra, bills three clients in one month: a Mumbai client (CGST plus SGST), a Bengaluru client (IGST at the applicable rate) and a Singapore client (export under LUT, no IGST). Only the Singapore invoice goes on the EDF.
Common confusion
People sometimes think exports are "IGST-free" in the sense of exempt. They are zero-rated, which is different: you keep the right to input tax credit or a refund. See CGST, SGST or IGST for domestic cases.