Can I Claim GST Refund On Exports?

The export activity serves as the key driver for the promotion of the economic growth of any nation. Thus, exports remain on the Government’s priority list and also remain the focus area in formulation of the several of the policy initiates of the Government over the past several decades. Also, according to the Indian tax regulations, the export activity is continuing to enjoy specialized treatment which will include the inclusion of the seamless refund claims against the activity of exports.

Description about zero-rate supplies

Under the Goods & Services regulations, the GST exports are considered zero-rate supplies. Thus the exporters are in the position of claiming the GST paid refund for the procurement under two of the conditions mentioned below:

• Goods/ service exports or both of these under the bond/ LUT( letter of undertaking. This is without the payment of GST. Also, to claim ITC( input tax credit) refund
• Export of goods and services or both, on payment of GST (by utilizing the ITC) and claim the refund of such GST paid on exports.
• The goods/ service exports/ both upon payment of the GST( through utilization of ITC) & claiming refund of GST which is being paid upon the exports.

These types of refunds are subjected to some of the restrictions along with safeguards being prescribed under GST law

GST for exports

In India, goods & service exports are considered as the interstate supply and thus, it is subjected to integration with the GST. However, according to the provisions of the IGST law, the goods & services export is termed as the zero-rated of the supplies, and thus it facilitates the exporter to claim the GST refund upon the exports . Although the goods & services supplied beyond geographical boundaries attract 0% of the GST, & thus it is mandatory from the side of the exporter to conduct the registration under the GST, When the aggregate the turnover exceeds GST threshold of 40 lakhs, 20 lakhs for states of special category) as per the specifications within the notification no. 10/2017 of the Integrated tax.

Eligibility Criteria for claiming GST Refund exports:

However, the criteria that have it included within the IGST regulation are meant for the promotion as well as the facilitating of export growth within the country. But if the exporter intends to avail of the benefits, there are certain eligibility conditions that he/she is required to fulfill:

Eligibility Criteria for claiming GST Refund exports :

Any of the registered taxable individuals, apart from the ISD( Input Service Distributor), TDS Deductor, Compounding payer & TCS collector will be claiming the refund for all the taxes that are being paid upon the exports, when the goods/ services that have been supplied are meeting the conditions mentioned below:

• When the location of the supplier is outside India.
• The recipient as well as the supply destination is external to the country.
• The service payment has been attained by the supplier in foreign exchange( convertible).
• Suppliers as well as the recipient of service are not merely the establishments of distinct individual.
• The products exports are considered as zero-rated supplies and they are exempted from GST. Also, it holds eligibility for the GST refund under the statute of the IGST( Integrated Goods & Services). The website GST is being developed to make things convenient for filing GST refund claims.

Other requirements for GST Refund Exports

• The taxpayer must be in the position of filling out the application by filling out form GSTR-1 and rendering all the export details along with the information on the integrated tax paid upon the shipping bill.
• In addition to that, a GSTR-3B application form needs to be proposed for the tax year during which the refund is required to be paid.
• The GST portal will then be sharing the export information which is embedded within the form GSTR1 through the Indian Customs Electronic Gateway, in combination with the form GSTR 3B which is filed most appropriate of the tax duration.
• The system will be comparing the Form GSTR01 information to the data mentioned on the shipping bill, EGM along with beginning the refund procedure. In such a situation, the taxpayer is not required to carry out the submission of the distinct refund application.

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What is the process of filing GST returns by exporter?

The ICEGATE system will provide payment information when the refund payment gets credited to the account of taxpayers along the GST portal will transmit all the taxpayer's details through SMS or email.

Paperwork which is needed for securing ITC on goods exports as per GST

ITC can be availed by a registered exporter after furnishing FORM GSTR-23. Some of the documents required are: Invoice will be issued through the good’s supplier, according to GST, section 31 provisions. Issuance of debit note( through supplier). Entry billings. Issuance of documentation through ISD( Input service distributor) as per provisions of GST.

Documentation needed to claim refunds on GST refunds exports are:

The registered exporter can avail of the returns by filling out FORM GSTR-2. Here is the documentation which is needed for the same:

• The invoice which is being issued through the supplier of the goods as per the provisions of sec-31, GST.
• Supplier issuing a debit note.
• Entry bill.
• Documentation issued through the input service distributor according to the GST guidelines.

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What is protocol to claim GST refund on exports under letter of undertaking, LUT?

The LUT( letter of undertaking) is the documentation which is filed by the exporter facilitating the products exports, without paying IGST, under the circumstances when the export conditions are satisfied. As per the notification no. 37/ 2017, Central tax, filing LUT for the goods & services export is compulsory. When the exporter is not having LUT, then he/she is required to make payment of GST.

What is the procedure to file a letter of undertaking( LUT)?

According to the Central GST introduced in the year 2017, in case the exporter intends to export the items, then it is mandatory to submit a letter of undertaking. This will facilitate the claim of the GST refund. Upon filing, the LUT will be held validity for the specific financial year. Thus, unlike the procedure for refund, the exporter is not required to go through all the procedural needs, during each & every time the export consignment is being conducted. The filing of the same could be done on the GST portal.

Process of GST refund on export of goods & services

Here is the stepwise procedure for the GST refund on the export of goods & services:

• Visit GST department's official site.
• Log into the GST website with the most accurate information like username, password and finally click upon the login icon.
• Click upon the services, carry out the selection of the returns dashboards from the return menu option.
• View file returns on the next page. Make sure to select the financial year along with the return filing period to file the return from the drop-down list.
• Click on the menu button, search.
• There will be the appearance of a file return page. This page represents the due date for filing returns & taxpayer needs to file using separate tiles.
• Click on add details icon to add a new invoice.
• Add your details on the next page, exports.
• Click on the save tab to save invoice details.
• Upon addition of invoices, carry out a selection of preview tab.
• Then return filings by clicking file with DSC/ file with EVC button icon.

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