Refund of ITC paid on Export

Refund of ITC paid on Export

Under GST, exports are "zero-rated," meaning you do not pay GST on exported goods or services. You can claim a refund for the GST paid on the inputs/services or the IGST paid upfront on your exports using two primary methods.1. Export with Payment of IGST (Rule 96)You pay IGST upfront at the time of export and claim a 100% refund.

• Process: This is highly automated for goods. Your shipping bill and export manifest (EGM) automatically act as your refund application once your GSTR-1 and GSTR-3B are successfully filed.
• Disbursement: Processed by Customs authorities via the ICEGATE Portal.

• Process: You must file a manual refund application in Form GST RFD-01 on the GST Portal.
• Documentation: Requires a statement of invoices, the LUT/Bond details, and an FIRC/BRC as proof of foreign currency realization for services

• Time Limit: Refund claims must be filed within 2 years from the relevant date of export.
• Timeline: The government typically processes refunds within 60 days. If delayed, an interest rate of 6% per annum is payable on the pending amount.