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GST refund on export

 GST Refund On Export (Guide 2023)

Do you ever wonder how GST refund on export works? If yes!

Then, this article is for you in which you will get a detailed and step-by-step guide.

Let’s deep dive into the topic.

Exporting goods with tax paid does not require a separate refund application, as the shipping bill will be considered the refund request.

Under the new GST return system, exports and refund applications in RFD-01 and RFD-11 will remain the same. There is a change in the reporting of export details in the return.

GSTR-1 details will be matched with those on the shipping bill filed with ICEGATE.

Follow the below steps to file the application for a refund of ITC on account of Exports without payment of Tax on the GST Portal: 

  1. Go to the GST homepage (https://www.gst.gov.in/ URL).
  2. Navigate to Services > Refunds > Application for Refund.
  3. Select the refund type, the page is displayed now.
  4. Click on the Refund of ITC on Export of Goods & Services without Payment of Tax option.
  5. From the drop-down list, select the Tax Period for which the application has to be filed.
  6. Press the Create refund application button.
  7. Press Yes if you want to file a nil refund. Or else, select No.
In case of Yes:In case of No:
8. Select the Declaration checkbox.8. It displays the Refund of ITC on the Export of Goods & Services without Payment of Tax page.
9. Select the name of the authorized signatory, in the name of Authorized Signatory drop-down list.In order to file a refund of ITC, you must first download the offline utility, upload details of exports of goods and/or services, then submit a refund application (without paying tax
10. Choose the file with the DSC or EVC button.9. Click the Download Offline Utility link.
10. Click the PROCEED button.
In Case of DSC:
a. Click the PROCEED button.
b. Select the certificate and click the SIGN button.
In Case of EVC:
a. On the GST Portal, click the VERIFY button and enter the OTP sent to the email address and mobile number of the Authorized Signatory.

11. Right-click on the downloaded zip file and select Extract All to unzip the downloaded file.

What are the documents required to claim a GST refund?

Here is a list of documents required for claiming GST refund:

  1. Copy of return evidencing payment of duty.
  2. Copy of invoice.
  3. It is necessary to provide proof of non-pass-through of tax burdens (CA certification or self-certification).
  4. Any other document required by the government.

How do I claim a GST refund on export?

In order to claim a GST refund on export, you have to file a refund application form GST RFD-01 at the GST portal. GST refunds are due whenever exports of goods/services are done without submitting Bonds/LUTs and IGST has been paid.

Within 7 days, 90% of Integrated GST paid on exports would be refunded and the balance within 60 days.

Who is eligible for GST refund?

A registered person can claim the GST refund. A GST Refund claim can be filed under the following circumstances:-

  1. Excess GST paid due to mistake
  2. Export of Goods or Services
  3. Supplies to SEZ units and developers
  4. Deemed Exports
  5. Refund of pre-deposit
  6. Upon inverted duty structure, the accumulated input tax credit is refunded.
  7. Refund of taxes on purchases made by the UN or embassies etc.
  8. Finalization of provisional assessment
  9. Refund arising on account of Judgement, Decree, Order, or Direction of the Appellate Authority, Appellate Tribunal, or any Court.
  10. Refund to International Tourists of GST paid on goods in India and carried abroad at the time of their departure from India.
  11. Refund on account of issuance of refund vouchers for taxes paid on advances against which, goods or services have not been supplied.
  12. Refund of CGST & SGST paid by treating the supply as intrastate supply which is subsequently held as Interstate supply and vice-versa.

Who is ineligible for an IGST refund?

An exporter who has availed duty drawback on CGST, SGST, or IGST, is ineligible for an IGST refund.

Although they can claim a refund of IGST if in case availed of drawback on basic customs duty. The inputs were obtained at a concessional rate of 0.1 percent.

FAQ: GST refund on export

Who pays IGST on export?

The exporter is liable to pay GST under the reverse-charge mechanism for purchases  above five thousand rupees in a day. 

Do you automatically get a GST refund?

If you have filed your taxes, then you will automatically get a GST refund.

Is GST exempted for export?

No, export is not exempted from GST. The export of goods and services is treated as interstate supply and is covered under the IGST Act.

What is the GST rate on export?

In the case of exporting goods or services, it is considered to be a zero-rated supply. However, any export of goods or services will not be subject to GST

Wrapping Up

We hope this article about GST refund on export resolves all your queries. If you have still any doubts about GST, do comment to us or feel free to reach out to us.

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