The coin your client uses does not change what you supplied. The payment condition still has to be shown.
GST treats an export of services as a zero rated supply when its conditions are met, and one condition is that you receive the payment in convertible foreign exchange, or in rupees where the RBI permits. A stablecoin sent to your own wallet does not show that, while a stablecoin settled through a bank and documented with an eFIRA does. Your accountant makes the final call on your filing, and this article is not tax advice. Our broader guide to GST for freelancers with foreign clients covers registration and the basics.
The five conditions for an export of services
| # | Condition | Where a stablecoin payment matters |
|---|---|---|
| 1 | The supplier is located in India | Not affected by the coin |
| 2 | The recipient is located outside India | Not affected by the coin |
| 3 | The place of supply is outside India | Not affected by the coin |
| 4 | Payment is received in convertible foreign exchange, or in rupees where the RBI permits | This is the condition that needs evidence |
| 5 | The supplier and recipient are not merely establishments of the same person | Not affected by the coin |
Where each way of getting paid stands on condition 4
| How the money reaches you | What it documents | Evidence for condition 4 |
|---|---|---|
| USDC to your own wallet, then sold on an exchange | A trade and a withdrawal | No bank record of foreign currency arriving |
| USDC to a DashX address, settled through a bank | An inward remittance in rupees against your invoice | An eFIRA from an Authorised Dealer Category I bank |
| A bank wire in dollars | An inward remittance | A bank FIRC or FIRA |
See FIRA for freelancers for what the document contains.
The Letter of Undertaking
A Letter of Undertaking lets you issue export invoices without charging IGST, and you file it each financial year on the GST portal. Put the LUT number on every export invoice, and renew it before the new year starts. Our LUT guide walks through the filing, and the export invoice format guide shows where the LUT line goes.
Refunds of input tax credit
Because an export of services is zero rated, you may claim a refund of the input tax credit on your business expenses, such as a laptop or software subscriptions. A refund claim is easier to support when each export invoice has an eFIRA behind it. See GST refunds for SaaS exporters for how the claim works, and GST for Fiverr and Upwork freelancers if you also earn through platforms.
What to keep for GST
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The export invoice with the LUT line.
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The eFIRA for the matching payment.
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Your bank statement showing the rupee credit.
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The contract or scope of work.
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The transaction hash for the stablecoin leg, if your accountant wants it.
Four common errors
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Charging IGST on an export invoice by mistake.
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Missing an LUT, or letting it lapse.
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Having no bank evidence that foreign currency arrived.
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An invoice amount that does not match the eFIRA, because the invoice was priced in USDC rather than USD.
Frequently asked questions
Is GST charged on USDC payments? GST attaches to the supply you made, not to the coin. If your service qualifies as an export of services and you file under an LUT, the supply is zero rated.
Do I need GST registration? That depends on your turnover and your facts. Our GST guide for freelancers explains when registration applies.
Does a FIRA replace an LUT? No. The LUT lets you invoice without IGST, and the eFIRA supports the payment condition.
Can I claim a refund if I was paid in stablecoins? You can claim where the conditions are met, and a bank issued eFIRA makes the payment condition easier to evidence.
Want each USDC payment to arrive with an eFIRA? Sign up for DashX
