GST refund on export of goods and services means recovering the GST paid on inputs used in exported goods or services.
Under GST law, exports are zerorated supplies no GST on exports, but eligible input tax credit (ITC), as per GST law, on inputs used in exports is refundable.
Two ways to claim:
- Export with IGST payment → claim IGST back
- Export under LUT → claim accumulated ITC back
This guide covers eligibility, process, documents, formula and common mistakes a comprehensive guide to help you claim your GST refund efficiently and avoid common errors.
What is GST Refund on Export of Goods and Services?
GST refund on export means recovering the GST paid on inputs used in exported goods or services. Exports are zerorated supplies, so no GST is charged, but eligible input tax credit (ITC), as per GST law, is refundable.
When you buy raw materials to manufacture export goods, you pay GST on those purchases. Since exports are zerorated supplies, no GST is charged on exports and eligible ITC can be claimed as a refund.
Export of Goods As per Section 2(5) IGST Act: taking goods out of India to a place outside India.
Export of Services As per Section 2(6) IGST Act, 5 conditions must be met:
- Supplier located in India
- Recipient located outside India
- Place of supply outside India
- Payment received in convertible foreign exchange
- Supplier and recipient are not establishments of the same entity
If all 5 conditions are met → qualifies as Export of Services.
Who Can Claim GST Export Refund?
Any GSTregistered exporter can claim GST refund on export if the following conditions are met:
- You have exported goods or services outside India
- GST was paid on inputs used in those exports
- All GST returns (GSTR1 & GSTR3B) are filed on time
- Proper export documents are in place
Who qualifies:
- Manufacturers exporting goods
- Service exporters receiving payment in foreign currency
- Suppliers making zerorated supplies to SEZ units
- Merchant exporters exporting under concessional 0.1% IGST rate, subject to conditions
Who cannot claim:
- Exporters of goods subject to export duty
- Businesses with pending GST return filings
- Those who have availed duty drawback on same goods
Types of GST Refund on Export (IGST vs LUT)
GST refund on export can be claimed through two methods IGST payment route (Rule 96) or LUT route without payment of tax (Rule 89).
Option 1 Export with Payment of IGST (Rule 96)
- Pay IGST at the time of export
- Shipping bill acts as the refund application, subject to data validation
- Refund processed via ICEGATE, subject to data matching
- Best for: Goods exporters with sufficient working capital
Option 2 Export under LUT Without Payment of IGST (Rule 89)
- File Letter of Undertaking (LUT) before export
- Export without paying IGST
- Claim accumulated ITC refund via Form RFD01
- Best for: Service exporters and cashsensitive businesses
Quick Comparison
| |
IGST Route |
LUT Route |
| Pay tax upfront |
Yes |
No |
| Separate form needed |
No |
Yes RFD01 |
| Refund type |
IGST paid |
Accumulated ITC |
| Best for |
Goods exporters |
Service exporters |
Documents Required for GST Refund on Export
GST refund on export requires Shipping Bill, Tax Invoice, and GSTR1 & GSTR3B filings for goods exports. For services, FIRC or BRC is generally required as proof of foreign payment received.
For Export of Goods:
- Shipping Bill
- Export General Manifest (EGM)
- Tax Invoice
- GSTR1 & GSTR3B filings
- LUT copy (if applicable)
- IEC Code (Import Export Code)
For Export of Services:
- Tax Invoice
- FIRC / BRC (proof of foreign payment received)
- Service agreement/contract with foreign client
- GSTR1 & GSTR3B filings
- LUT copy (if applicable)
Important: Missing documents may lead to delays or queries. GetMyCA verifies all documents through a 200+ point checklist before filing.
StepbyStep Process to Claim GST Refund on Export
GST refund on export is claimed by filing GSTR1 and GSTR3B, followed by choosing either the IGST route or LUT route, with refund processed through ICEGATE or Form RFD01.
Route 1 Export with Payment of IGST:
- File export invoice with IGST payment details
- Report export in GSTR1 (Table 6A) with shipping bill details
- Declare export turnover in GSTR3B (Table 3.1b)
- Shipping bill automatically becomes refund application
- ICEGATE matches data → refund credited to bank account
Route 2 Export under LUT:
- File LUT in Form GST RFD11 on GST portal before export
- Export without paying IGST
- File GSTR1 and GSTR3B with export details
- File refund application in Form RFD01 on GST portal
- Upload Statement 3 with invoice details
- ARN generated → Officer verifies → Refund credited
Timeline: Refund is generally processed within 60 days from ARN generation. Delay → 6% interest payable by government.
Refund Amount Calculation Formula
GST refund amount on export is calculated using the formula: (Export Turnover × Net ITC) ÷ Adjusted Total Turnover. For IGST route, 100% of IGST paid on exports is refundable.
For LUT Route Rule 89(4):
Refund Amount = (Export Turnover × Net ITC) ÷ Adjusted Total Turnover
Simple Example:
| |
Amount |
| Export Turnover |
₹50,00,000 |
| Net ITC |
₹9,00,000 |
| Total Turnover |
₹75,00,000 |
| Refund |
₹6,00,000 |
For IGST Route: Refund = 100% of IGST paid on exports. No formula needed.
Note: ITC on capital goods is allowed but not included in refund calculation.
Time Limit & Relevant Date
GST refund on export must be claimed within 2 years from the relevant date as per Section 54 of CGST Act. Missing this deadline results in loss of refund eligibility.
| Export Type |
Relevant Date |
| Goods via Sea/Air |
Date when ship/aircraft departs from India |
| Goods via Land |
Date when goods cross the land border |
| Goods via Post |
Date when goods are dispatched via post |
| Services payment received first |
Date of receipt of foreign payment |
| Services invoice issued first |
Date of invoice issued |
| LUT Route (ITC refund) |
End of financial year |
Refund claim is generally not allowed after 2 years from the relevant date.
Common Mistakes to Avoid
| Mistake |
Impact |
Solution |
| GSTR1 and Shipping Bill mismatch |
Refund rejected |
Ensure data is properly matched before filing |
| LUT not filed before export |
Claim invalid |
File RFD11 before export |
| FIRC/BRC missing (services) |
Refund hold |
Obtain it from the bank in advance |
| 2year deadline missed |
Loss of refund eligibility |
Track deadlines carefully to avoid missing timelines |
| ITC on capital goods claimed |
Rejection |
Claim ITC only on inputs and input services |
| Incomplete RFD01 filing |
Deficiency memo |
Seek expert assistance for accurate filing |
| Exports declared in wrong table in GSTR3B |
Processing delay |
Declare exports correctly in Table 3.1(b) |
Pro Tip: GetMyCA verifies every claim through a 200+ point checklist before filing process designed to minimize rejection risk.
GST Refund on Export of Services Special Rules
The refund process for export of services differs slightly from goods.
Key Difference Proof of Payment:
- For Goods: Shipping Bill is sufficient
- For Services: FIRC or BRC is generally required
| |
FIRC |
BRC |
| Full Form |
Foreign Inward Remittance Certificate |
Bank Realisation Certificate |
| When issued |
On every inward remittance |
Per invoice |
| Issued by |
Bank |
Bank |
Why Choose GetMyCA for GST Export Refund?
Since 2018, GetMyCA has helped 5,000+ businesses recover their stuck GST refunds across India.
| |
GetMyCA |
| Success Rate |
100% |
| Experience |
8+ years in GST refund |
| Validation |
200+ point checklist |
| Fees |
No success, no fees |
| Support |
Dedicated expert assigned |
We handle everything:
- LUT filing
- RFD01 preparation & filing
- GSTR1 & GSTR3B reconciliation
- Deficiency memo replies
- ARN tracking till bank credit
Don’t let your working capital stay stuck claim your GST refund efficiently with expert guidance from GetMyCA.
Call: +918017390173 getmyca.com/gstrefund
Frequently Asked Questions
Q1. Can I claim GST on exported goods?
Yes. All exported goods are zerorated under GST. You can claim back the GST paid on inputs used in manufacturing those goods.
Q2. Who is eligible for GST export refund?
Any GSTregistered exporter who has paid GST on inputs and filed GSTR1 & GSTR3B on time is eligible.
Q3. What is the time limit for GST export refund?
2 years from the relevant date of export. Missing this deadline means loss of refund eligibility.
Q4. How to claim refund of IGST paid on export?
File Shipping Bill + GSTR1 (Table 6A) + GSTR3B. Shipping bill automatically acts as refund application. Refund processed via ICEGATE.
Q5. Can GST refund be claimed on export of services?
Yes. File LUT + GSTR1 + GSTR3B + RFD01 with FIRC/BRC as proof of foreign payment received.
Q6. What is the formula for GST refund on export?
Refund = (Export Turnover × Net ITC) ÷ Adjusted Total Turnover. For IGST route 100% IGST paid is refundable.
Q7. How long does GST export refund take?
60 days from ARN generation. If delayed, government pays 6% interest on pending amount.
Q8. What if IGST refund is not received?
Check GSTR1 vs Shipping Bill mismatch on ICEGATE portal. Most common reason is data mismatch or pending EGM filing.
About the Author
Paras Nagpal
Business Consultant, GetMyCA
Email: [email protected] | Phone: +91 87500 70012
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Tax laws and rules are subject to amendments.
About GetMyCA
GetMyCA Consultants Private Limited is a trusted business consultant based in New Delhi, serving clients across India since 2015. GetMyCA is helping entrepreneurs with hasslefree GST refund claims since 2018. Our team of qualified Chartered Accountants has successfully recovered stuck credits for businesses across pharma, footwear, corrugated box manufacturing, and ecommerce sectors.
Our Services: GST Registration & Compliance, Company Registration, Tax Consulting, Accounting Services, Business Compliance, FSSAI Licensing, MSME Registration, and specialized GST Refund Solutions.
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