How to Create a Commercial Invoice for Export from India (2026 Guide)

What is a Commercial Invoice?

A commercial invoice is the most important document in international trade. It serves as a bill from the seller (exporter) to the buyer (importer), detailing the goods sold, their value, and the terms of the transaction. Indian Customs, the buyer's customs authority, banks (for LC transactions), and shipping lines all require the commercial invoice.

Unlike a proforma invoice (which is a quotation), a commercial invoice is a legally binding document that triggers payment, customs clearance, and duty assessment at the destination.

Required Fields in a Commercial Invoice

Every commercial invoice for export from India must include these fields:

1. Exporter Details — Company name, address, IEC code, GSTIN, contact information
2. Buyer/Consignee Details — Full name, address, country, contact. If the consignee and buyer are different (e.g., in LC transactions), list both
3. Invoice Number & Date — Unique serial number following your company's numbering system
4. Buyer's Order Number & Date — Reference to the purchase order
5. Country of Origin — "India" for all exports from India
6. Country of Final Destination — Where the goods will ultimately be consumed
7. Port of Loading — Indian port (e.g., Nhava Sheva, Chennai, Mundra)
8. Port of Discharge — Destination port
9. Terms of Delivery (Incoterms) — FOB, CIF, CFR, EXW, etc. with named place
10. Terms of Payment — Advance, LC, D/P, D/A, Open Account with credit period
11. HS Code — 8-digit ITC-HS classification for each product
12. Description of Goods — Detailed product description, specifications, grade
13. Quantity & Unit — Exact quantity with unit of measurement (Kgs, Nos, Ltrs, MT)
14. Unit Price & Total Value — In the agreed currency (usually USD, EUR, or GBP)
15. Total Invoice Value — Sum of all line items in foreign currency
16. Pre-Carriage & Vessel Details — Mode of transport, vessel name, voyage number

GST Treatment on Export Invoices

Exports from India are treated as "zero-rated supply" under GST. This means:

• Export under LUT (Letter of Undertaking) — No IGST charged. This is the most common method. File LUT on the GST portal before exporting.
• Export with IGST payment — Charge IGST on the invoice and claim refund later. Slower but sometimes used when input credits are accumulated.
• Export to SEZ — Treated as zero-rated, similar to exports. Can be with or without IGST.

Always mention the LUT number on the invoice if exporting under LUT. Example: "Supply meant for export under LUT. LUT Reference: AD180326XXXXXXX"

Currency and Exchange Rate

The invoice must be in the currency agreed upon in the contract. For customs valuation in India, the RBI reference rate on the date of the shipping bill filing is used. Key points:

• Always mention the currency code (USD, EUR, GBP, AED, etc.)
• If the amount is in INR, mention the equivalent in foreign currency
• For LC transactions, the invoice currency must match the LC currency
• Customs uses the CBIC-notified exchange rate (updated weekly) for FOB valuation

Common Mistakes to Avoid

• HS code mismatch — The HS code on the invoice must match the shipping bill. Mismatch leads to customs hold.
• Value discrepancy — Invoice value must match the shipping bill FOB value. Any difference triggers investigation.
• Missing IEC code — Without IEC, customs will not process the export
• Wrong Incoterms — Using CIF when the agreement is FOB causes insurance and freight disputes
• No LUT reference — If exporting under LUT but not mentioning it, customs may demand IGST payment
• Incorrect country codes — Use standard ISO country codes, not abbreviations

Commercial Invoice vs. Other Export Documents

Document	Purpose	When Issued
Proforma Invoice	Quotation / Price estimate	Before order confirmation
Commercial Invoice	Bill for goods sold	At time of shipment
Packing List	Details of packaging	With commercial invoice
Bill of Lading	Receipt of goods by carrier	After cargo loaded on vessel
Shipping Bill	Customs declaration	Before export clearance

How Eximly Simplifies Commercial Invoice Generation

With Eximly, you don't need to manually create invoices in Excel or Word. Our platform auto-generates professional commercial invoices from your order data — pulling buyer details, HS codes, product descriptions, and pricing from your database. Every invoice is GST-compliant with LUT references, correctly formatted for customs, and available as a downloadable PDF. Start your free trial and generate your first invoice in under 2 minutes.