How to Automate GST and TDS for International Payments in India

Indian startups and freelancers are going global — billing in USD, EUR, and GBP. But with international earnings comes the burden of export tax compliance — especially GST (Goods and Services Tax) and TDS (Tax Deducted at Source).

If you're tired of reconciling exports manually every quarter, it's time to explore how PlusPe automates GST and TDS workflows for international payments.

🇮🇳 Understanding GST on Export Services

Exports of services are zero-rated under Indian GST law, but still require:

• Valid GST registration
• Invoice generation in foreign currency
• LUT (Letter of Undertaking) filing with GSTN
• Quarterly export reporting (GSTR-1)

Failure to follow this correctly can attract penalties, interest, or denial of export status.

💸 TDS on Foreign Payments

While TDS is not typically deducted from foreign clients, Indian entities making payments to overseas vendors or affiliates must:

• Deduct TDS on commissions or royalties
• File returns under section 195
• Provide Form 15CA/15CB when applicable
• Ensure DTAA (Double Taxation Avoidance Agreement) documentation

This adds layers of complexity for startups dealing with global users and partners.

🤖 The Problem with Manual Reconciliation

Manually handling export invoicing, LUT mapping, FIRC collection, and TDS returns can be:

• Time-consuming
• Error-prone
• Non-compliant under audit

Startups often miss out on claiming export benefits because they don’t file properly.

⚙️ How PlusPe Automates Tax Workflows

PlusPe’s export-ready wallet and payment system helps you:

For GST:

• Auto-generate GST-compliant export invoices
• Maintain serial numbers per GSTIN
• Map each foreign payment to the invoice
• Auto-link FIRCs (Foreign Inward Remittance Certificates)
• Export GSTR-1 and refund-ready reports

For TDS:

• Auto-tag payouts based on TDS rules
• Generate Form 15CA/15CB compatible exports
• Maintain compliance logs for auditors
• Support DTAA rates per country
• Bulk TDS ledger with monthly summaries

🧪 Real Example

An EdTech company in Bangalore expanded globally and started billing in GBP and AED.

They used PlusPe to:

• Create GST-export invoices
• File LUT digitally
• Track foreign currency receipts per invoice
• Claim refunds under zero-rated export policy
• Generate Form 15CA for UAE consultant payouts

The result? 94% less time spent on export tax filing and 100% audit-readiness.

📦 Who Can Benefit

• SaaS startups billing international clients
• Agencies receiving USD retainers
• Freelancers and creators getting paid in EUR
• Exporters of software and consulting services
• Platforms with foreign affiliates or instructors

Internal Links You Can Add

• Enable INR to USD Payments for Indian Apps
• UPI Payment Challenges in Gaming & Forex Sectors
• Secure Payment Solutions for Forex, Gaming & Betting

Final Thoughts: Automate, Don’t Accumulate Risk

Exporting digital services can be rewarding — but only if tax compliance doesn’t slow you down.

With PlusPe’s built-in GST and TDS engine, your startup can focus on growth while the backend stays compliant.

🚀 Automate Tax Reports, Sleep Better

Talk to PlusPe to activate GST/TDS automation for your global payments.