How to Claim for GST Refund for Export of Goods

The word export deals with the supplying and trading of various goods and services beyond the domestic territory of the country. A new concept of ‘zero-rated supply’ is introduced as per which government deals with all the important considerations which are related to the export of goods and services. In this post, I will share how you can claim for GST Refund for Export of Goods.

What is the Export of Services?

Section 2(6) of IGST says that export of services is the process of supply of any kind of services when the following conditions are satisfied:

  • The supplier is located in India.
  • The recipient is outside India.
  • The place of supply is outside India.
  • The payment of the service is received by the supplier of service inconvertible foreign exchange.

Zero Rated Supply

As per Section 16(1) of the IGST Act, GST is not applicable to the exports. Thus all the exports under GST would be classified under ‘Zero Rated Supply.’ In such exports, Input Tax Credit(ITC) would be applicable.

A person making a Zero Rated Supply has two options:-

  • First to supply the goods and services on payment of IGST and then claiming for the GST refunds of the tax paid
  • To supply goods and services under a bond or letter of Undertaking without paying GST and then later on claiming for the refund of unutilized ITC.

Documents required to get a GST refund

  • A cover letter
  • Foreign Inward Remittance Certificate or Bank Realization Certificate
  • Form GSTR 3B and GSTR 1 which you can download from GST Website
  • Invoices of export
  • Application for refund in the Form GST RFD 01
  • Canceled cheque
  • In case the claim for GST refund is more than Rs. 2lakhs per quarter, a certificate from the Chartered Accountant is required.

How to Claim for GST Refund for Export of Goods

Claim GST Refund

Step 1: An application should be forwarded to the officer with all the above-mentioned documents for a GST refund. Within three days of filing the application, an acknowledgment should be issued by the officer in Form GST RFD-02.

Step 2: An order shall be made within seven days from filing the application in Form GST RFD-04 sanctioning the amount of refund on the provisional basis.

Step 3: The payment advice issued by the officer in Form GST RFD-05 will be electronically credited in the bank account of the applicant. 90% of the amount is credited by this time.

Step 4: The documents will be verified by using the online data in the GST portal.

Step 5: Once all the documents are verified, the remaining 10% is payable by issuing Form GST RFD-06.

A claim must be filed within the expiry of 2 years from the date of export in case of a supply of goods.

Lawyer by Profession,. I love to talk about Indian Laws, and discuss them in depth.

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