Export Refund

Introduction:

An export supply under the GST law is also called a zero-rated supply since the rate of tax on export supplies is intended to effectively be nil or zero. Deemed exports are also zero-rated supplies. The process of declaration of exports varies slightly under each method.

GST refund process for exports under the present return filing

a) Export with payment of IGST:

Exporters can claim the refund of IGST paid at the time of export. The GST refund process for exports in case of goods begins with by taking reference to a primary document known as shipping bill. The shipping bill and other export-related documents should be filed on the Indian Customs Electronic Commerce Gateway (ICEGATE).

b) Export without payment of IGST:

GST refund process for exports, in this case, involves a different document. The option to export goods without payment of tax can either be used under the cover of a Letter of Undertaking (LUT) or a bond. In such case, any ITC accumulated on inputs/input services un-utilised will be available for refund. The option of LUT is available only for a select number of exporters satisfying a prescribed criterion. The procedure is similar to the export of services.

Export Refund