Exports of goods and services are treated as zero-rated supplies under GST. Exporters generally have two routes:
- Export under a Letter of Undertaking (LUT) without paying IGST, and claim a refund of the unutilised input tax credit; or
- Export on payment of IGST, and claim a refund of the IGST paid.
Most service exporters choose the LUT route because it avoids blocking cash in tax payments.
Before you export
- File the LUT on the GST portal for the financial year before making exports under it.
- Make sure your invoices mention that the supply is meant for export under LUT without payment of IGST.
Documents usually needed for the refund
- Statement of export invoices for the period
- Proof of receipt of foreign exchange (for example, bank certificates / FIRC)
- Computation of eligible ITC as per the prescribed formula
- Returns for the period filed and reconciled
Time limit
A refund application must be filed within two years from the relevant date. Do not wait until the end — refunds filed promptly are easier to support.
Common reasons for deficiency memos
- Mismatch between invoice values and foreign exchange received
- ITC in the claim not matching GSTR-2B
- Missing or unclear supporting documents
We prepare complete refund files to reduce back-and-forth with the department. Ask us about your refund.