Claiming GST Refunds in Case of Exports

The exports of goods and services are deemed as inter-state supplies under the Goods and Services Tax regime. Therefore these are subjected to Integrated Goods and Services Tax. All the supply of goods and services which are exported are called zero-rated, which means there is 0% GST rate on transactions related to them. All the exporters are allowed to claim the Input Tax Credits on the inputs that they used to produce goods and provide the services without charging any GST from the consumers. A refund on the GST paid for exports of goods and services are liable to refund and can be termed as GST Refunds on Exports. There are certain conditions under which supply of goods and services are called exports. These are:

  • When the goods and services supplier is resident in India.
  • When the recipient of the goods and services is a non resident of India or lives outside of India.
  • When the payment received by the supplier for supplying goods and services is in foreign exchange which is convertible.
  • When the place of supply of goods and services is outside of India.
  • When the supplier of the goods and services and the recipient are not merely established by a distinct person.

Who can claim GST Refunds on exports:

A person can claim refunds on exports only under these circumstances:

  1. If he/she is supplying zero rated goods and services.
  2. If he/she supplying goods and services under bond or Letter of Undertaking (LUT) without paying IGST and have unutilized Input Tax Credits.
  3. If he/she has paid IGST on supply of goods and services.

How to claim GST Refunds on Exports:

There is a proper procedure for claiming refunds of GST on exports. These are:

  1. Login to GST Portal.
  3. Select the month for which you want to file the GSTR TABLE 6A and search.
  4. On the FORM GSTR-1 TABLE 6A tile click on PREPARE ONLINE.
  5. To start filing the returns click on INITIATE NIL FILING.
  6. Add the details of all the export invoices by clicking on ADD DETAILS.
  7. Enter bill number and date of issue of the bill.
  8. Enter Port Code from where the supplies were transported.
  9. Enter Shipping Bill Number and total invoice value.
  10. In the ITEM DETAILS enter the taxable values of the supplied goods and services as per the applicable tax.
  11. You can see the saved invoices under PROCESSED INVOICES.
  12. By using the edit or delete button under ACTIONS one can edit or delete the details of the invoices.
  13. Verify all the entered invoices and click on FILE RETURN.
  14. Click on the verification checkbox.
  15. From drop down menu select Authorized Signatory.
  16. File return using Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

Conditions for filing GST Refunds on Exports:

There are some rules formulated for claiming the IGST paid on Exports. There are some forms to be filed and conditions to be fulfilled for successfully claiming the refunds. These are:

  1. Filing the TABLE 6A of GSTR-1.
  2. Filing the GSTR 3B for the month.
  3. Details of the shipping bill and the invoice given in TABLE 6A of GSTR-1 should match.
  4. The amount of IGST paid and mentioned in GSTR-3B must be equal to or more than the amount mentioned in TABLE 6A of GSTR-1.

Documentation for GST Refunds on Exports:

In cases of both export of goods and export of services the required set of documents are different. These are:

  1. Documents required for filing GST refunds on export of goods are-
  • Shipping bill
  • Export General Manifest (EGM)
  • Form GSTR-1
  • Form GSTR-3B
  1. Documents required for filing GST Refunds on Export of services-
  • Bank Realization certificate (BRC) or
  • Foreign Inward Remittance Certificate (FIRC)

How much time is taken for GST Refunds on Exports:

The 90% of the amount of GST Refunds on Exports are sanctioned by the concerned GST officer provisionally within seven days of the application. He issues the refund in Form GST RFD-4 then, acknowledgement is issued within 3 days in case of export related refunds. GST officer makes a payment advice in Form GST RFD-5 and the refund is electronically transferred to the account of the claimant.

Author: Anil Agrawal
EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or