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Understanding the process to avail the refund of GST paid on the exports

As per the IGST Act export is the process of selling goods and services in international Market. According to the act goods and services which are exported are considered “Zero rated supplies”. India has the developing economy and Government make the policies to expand its export base.

The GST rate is 0% for the exports, the persons who export such goods and services are eligible for claiming refunds on the GST paid.

There are three types of GSTs

  • CGST is the Central GST
  • SGST is the State GST
  • IGST is the integrated GST applicable on inter-state supplies of goods and services and on the imports- exports of India. Exporters can claim the IGST charged on the exports. There are two methods of exporting under GST – 1) Exporting under LUT/Bond without paying the IGST.

Exporting under Letter of Undertaking (LUT) or bonds:-

To export goods and services without payment of IGST the exports need to take the Letter of Undertaking (LUT), LUT is the documents that goods and services exporters can file to export without paying tax. It make sure that the goods/Service exporters don’t have to go to the trouble of claiming a refund or following up with the IT department, much time can be saved by avoiding refund process.

Exporting with the Payment of GST:-

Goods/Service Exporters can claim the refund of IGST which they are paying on the goods/service exports. The shipping bills, invoices, BRCs etc documents are used to file on ICEGate to file the IGST Return. On the online portal GSTR – 1 is filed with the details like – Invoice date, port code, total invoice value, shipping bills, GST Payment.

The Government provide other benefits on the exports under MEIS Scheme and SEIS Scheme under which goods and service exporters can claim the benefits in the form of transferable Duty credit scrips. Union Cabinet approved RoDTEP Scheme which will reimburse the duties or taxes paid on the export products which are not refunded in any other scheme.

Documents required for claiming the GST Refund while exporting goods:-

To avail the GST refund there are the following documents required:-

  • Exporters should have active IEC (Import Export Code)
  • Under LUT bond the goods exporters can export without paying IGST
  • The tax invoices should have the details like – export made with or without the payment of IGST, Address, Name, GSTIN of the exporters, HSN of the goods along with the description, size and amount of the goods, shipping bills having same details as in tax invoice.

Documents required for claiming the GST refund while exporting services:-

  • If the service delivery qualifies the export under section 2(6) of the 2017 IGST act, under LUT bond service exporters can export without paying IGST.
  • GSTIN of the exporters
  • HSN code of services with description
  • Signature of the service exporters
  • Foreign Inward remittance


Understanding the process to avail the refund of GST paid on the exports

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