Exports are zero-rated under GST — you should not bear tax on what you sell abroad. But zero-rated does not mean automatic: refunds must be claimed, correctly.
The two refund routes
- Export with LUT (no tax paid): file a Letter of Undertaking, invoice without IGST, and claim refund of the input credit accumulated on your purchases.
- Export with tax paid: pay IGST on the export invoice and claim it back — often faster for goods since shipping bill data flows automatically.
Why refunds get stuck
- Invoice details not matching shipping bills or bank realisation certificates
- Supplier non-filing knocking out the input credit behind the claim
- Missed time limits — refund claims have a limitation period
- Incomplete documentation at the first application (each deficiency memo restarts the clock)
A discipline that pays for itself
Exporters who reconcile monthly and file complete claims get refunds routinely; those who apply casually finance the government interest-free.
We prepare and chase export refunds as part of our import-export services. Book a free consultation.
