Software and IT services companies, especially those serving overseas clients, have specific compliance around export of services, GST and, often, startup recognition.

This guide covers compliance for tech companies.

Registrations you need

  • Private Limited or LLP incorporation
  • GST registration
  • IEC for certain service exports/benefits
  • DPIIT recognition for eligible startups

Taxes and returns

  • GST — export of services is zero-rated; file an LUT to export without paying IGST
  • Income tax; Section 80-IAC holiday for recognised startups (on approval)
  • TDS on salaries, contractor and professional payments

Practical tips

  • File an LUT to export services without GST and claim ITC refunds
  • Maintain FIRC/FIRA for foreign receipts
  • Consider DPIIT recognition for tax and compliance benefits

Frequently asked questions

Is GST payable on software exports?

Export of services is zero-rated. With an LUT you export without paying IGST and can claim a refund of accumulated input tax credit.

Do software startups get tax benefits?

Recognised startups can apply for the Section 80-IAC three-year tax holiday and angel-tax exemption.