Zoho Invoice is one of the most practical free invoicing tools for Indian businesses. With the right setup, it generates GST-compliant international service invoices automatically — including LUT reference, zero-rated treatment, and multi-currency support. This guide covers the complete setup.
Step 1: Zoho Invoice Account Setup (India GST)
When creating your Zoho Invoice account:
-
Country: India
-
Currency: INR (base currency)
-
GST: Enable GST in settings if you're GST registered Settings → Taxes → GST Settings:
-
Enable GST
-
Enter your GSTIN
-
Business type: Regular
Step 2: Set Up Multi-Currency
Settings → Currencies → Enable Multi-Currency
Add the currencies you invoice in:
- USD — for US clients
- GBP — for UK clients
- EUR — for EU clients
- AED — for UAE clients For each: set exchange rate update preference (auto from mid-market, or manual per invoice).
Step 3: Create International Customer Profiles
Contacts → New Customer
For each international client:
- Name and company
- Country: USA / UK / Germany / UAE etc.
- Currency: USD / GBP / EUR / AED
- Tax treatment: Export / SEZ (Zero Rated) Setting "Export" tax treatment means Zoho Invoice automatically applies 0% IGST to all invoices for this customer.
Step 4: Create a Custom Export Invoice Template
Settings → Templates → Invoices → New Template
Your international invoice template should include these custom fields:
Notes section (mandatory for export compliance):
Export of Services — IGST @ 0%
(Zero Rated under Section 16, IGST Act 2017)
LUT Reference: [Your LUT ARN] for FY 2025-26
Payment instructions (add as custom field or in notes):
Payment Options:
1. Instant card payment: [Playto Pay payment link]
(Visa / Mastercard / Amex / Apple Pay)
2. Bank wire:
Account Name: [Company Name]
Routing No: [USD VBA routing]
Account No: [USD VBA account]
Reference: [Invoice Number]
Save as your default template for international customers.
Step 5: Create and Send an International Invoice
Invoices → New Invoice
-
Customer: Select international client (currency auto-fills)
-
Invoice date and due date
-
Line items: Service description, quantity, rate in client's currency
-
Tax: Should auto-show 0% IGST for export customers
-
Notes: LUT reference and payment instructions (from template) Review the invoice. Verify:
-
Currency shown in client's currency (USD/GBP/EUR)
-
Tax shows IGST @ 0%
-
LUT reference visible
-
Payment link included Send via email. Zoho Invoice tracks whether the client has opened and viewed the invoice.
Step 6: Record Payment Received
When client pays via Playto Pay:
Invoices → [Invoice] → Record Payment
- Date: Playto Pay settlement date
- Amount: full invoice amount
- Mode: Online Transfer
- Reference: Playto Pay transaction ID (from FIRA)
- Notes: "Received via Playto Pay VBA, FIRA downloaded"
Step 7: Export Reports for GST Filing
Reports → Sales → Sales by Customer (Export)
This gives you total export turnover per financial year by customer. Use this alongside Playto Pay FIRA bundle when your CA prepares GSTR-1 and GST refund claims.
FAQ
Does Zoho Invoice automatically apply 0% IGST for international customers? Yes, when you set the customer's tax treatment to "Export / SEZ (Zero Rated)."
How do I add the LUT reference to every Zoho Invoice international invoice? Add it to your invoice template's Notes section. It will automatically appear on every invoice created from that template.
Can I include my Playto Pay payment link in Zoho Invoice templates? Yes. Add your static payment link to the template Notes or create a custom field. For dynamic payment links (amount-specific), generate from Playto Pay dashboard and paste into the invoice notes for each invoice.
Does Zoho Invoice support AED invoicing for UAE clients? Yes. Enable AED in multi-currency settings. Create a UAE customer profile with AED currency. Invoices generate in AED automatically.