{"id":12092,"date":"2020-07-03T16:15:12","date_gmt":"2020-07-03T10:45:12","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=12092"},"modified":"2024-07-02T17:33:24","modified_gmt":"2024-07-02T12:03:24","slug":"know-about-gst-refund-on-exports","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/know-about-gst-refund-on-exports\/","title":{"rendered":"All you need to know about GST Refund on Exports"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The claiming concerning the <strong><em>GST\nRefund on exports<\/em><\/strong> would witness a revamp under the new GST Return\nsystem. Under goods and service tax regime, exports get considered as zero-rated\nsupplies. The special category of supplies under GST are- <strong><em>exports, deemed exports, supplies\nto SEZ units, and zero-rated supplies.<\/em><\/strong> Since zero-rated supplies fall\nunder the section of the special form of supplies under GST, they are liable to\nenjoy certain benefits as well. <strong><em>Table 6A of GSTR-1<\/em><\/strong> demands the\nreporting of export details.<\/p>\n\n\n\n<p>Before moving to the procedure of the GST Refund on exports, we will introduce you to the concept of exports under GST.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/know-about-gst-refund-on-exports\/#Concept_of_Exports_under_GST\" >Concept of Exports under GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/know-about-gst-refund-on-exports\/#Mandatory_Conditions_to_get_fulfilled_for_Export_of_Services_to_Take_Place\" >Mandatory Conditions to get fulfilled for Export of Services to Take Place<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/know-about-gst-refund-on-exports\/#The_procedure_of_the_GST_Refund_on_Exports_of_Goods_and_Services\" >The procedure of the GST Refund on Exports of\nGoods and Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/know-about-gst-refund-on-exports\/#Benefits_that_Exporters_get_Under_GST\" >Benefits that Exporters get Under GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/know-about-gst-refund-on-exports\/#Relevant_Time_Table_for_Several_Types_of_Exports\" >Relevant Time Table for Several Types of Exports<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/know-about-gst-refund-on-exports\/#Take_Away\" >Take Away<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Exports_under_GST\"><\/span>Concept of Exports under GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The concept of export of goods revolves around taking goods out of India to a location outside the geographical boundaries of India. On the other hand, the export of services means when the location of the service&#8217;s supplier is within India, and the place where the supply of services takes place is outside Indian boundaries. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mandatory_Conditions_to_get_fulfilled_for_Export_of_Services_to_Take_Place\"><\/span>Mandatory Conditions to get fulfilled for Export of Services to Take Place<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The essential conditions mentioned\nbelow should get fulfilled for the export of services to take place under goods\nand service tax regime- <\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>If the location for the supplier of services is within India<\/li>\n\n\n\n<li>If the location for the recipient of service is outside the Indian borders<\/li>\n\n\n\n<li>If the place of supply is somewhere outside India <\/li>\n\n\n\n<li>As specified by the GST law, the relationship between the recipient and the supplier of service should not be that of a distinct person<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_procedure_of_the_GST_Refund_on_Exports_of_Goods_and_Services\"><\/span>The procedure of the GST Refund on Exports of\nGoods and Services<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The taxpayers can go with any one of the options for GST Refund on exports of goods and services-<\/em><\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"619\" height=\"276\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-15.png\" alt=\"r GST Refund on exports of goods and services\" class=\"wp-image-12093\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-15.png 619w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-15-300x134.png 300w\" sizes=\"(max-width: 619px) 100vw, 619px\" \/><\/figure><\/div>\n\n\n<ol>\n<li><strong><em>Refund of IGST paid on Exports in the wake of setting off the ITC without the shade of Letter of Undertaking or Bond, except in the cases given below- <\/em><\/strong><\/li>\n<\/ol>\n\n\n\n<ul>\n<li>If\na claim is against the drawback concerning the taxes paid for the goods or\nservices exported<\/li>\n\n\n\n<li>In\nthe matter of export of goods outside India get subjected to export duty<\/li>\n\n\n\n<li><strong>Notification 48\/2017- Central Tax- dated\nOctober 18, 2017-<\/strong> All the deemed exports except those capital goods that\nget exported under the scheme of Export Promotion Capital Goods<\/li>\n\n\n\n<li><strong><em>Notification\n40\/2017- Central Tax- dated October 23, 2017-<\/em><\/strong> Exporter of goods as well\nas services on which concessional tax would get paid for purchases with regard\nto intra-state and is helpful in making such exports as well <\/li>\n\n\n\n<li><strong><em>Notification\n78\/2017 &amp; 79\/2017<\/em><\/strong>&#8211; <strong><em>customs, dated October 13, 2017<\/em><\/strong>&#8211; If\nthe IGST got exempted for export of goods or services from the specified areas\nsuch as Software Technological Park or Export Oriented Unit or Hardware\nTechnological Park in the same way as stated under the customs law.<\/li>\n<\/ul>\n\n\n\n<p><strong>2.<\/strong> <strong><em>Refund of accumulated ITC that didn&#8217;t get used where export of goods or services took place without IGST payment and under the roof of Letter of Undertaking (Also referred to as LUT in short) and the bond.<\/em><\/strong><\/p>\n\n\n\n<p>In the cases mentioned above, the claim for GST refund on exports can happen by filing the required details in <strong><em>Table 6A- GSTR-1<\/em><\/strong> and after that, by filing the summary return every month in <strong><em>GSTR-3B.<\/em><\/strong><\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/difference-between-vat-and-gst\/\">A Brief Coverage on the Difference between VAT and GST\n<\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Additional Steps Regarding GST Refund on Exports<\/h3>\n\n\n\n<ul>\n<li>In the matter of goods to get exported with <strong>IGST payment<\/strong>, the <strong><em>Shipping Bill or Bill of Export <\/em><\/strong>would get considered as the application for IGST Refund. <\/li>\n\n\n\n<li>The Shipping Bill details that the exporter states in GSTR-1 would get verified by the GST Officer. Also, the GST Officer is responsible for the verification of the details coming on the <strong><em>ICEGATE portal<\/em><\/strong>.<\/li>\n\n\n\n<li>In case if the GST Officer gets satisfied with the declaration made in <strong><em>GSTR-1,<\/em><\/strong> he will credit the refund amount into that bank account, which the taxpayer has declared during <em><a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a><\/em> time. <\/li>\n\n\n\n<li>Nevertheless, refund claims must get completed by the services exporters who paid IGST on exports by going on for applying in <strong><em>RFD-1 Form<\/em><\/strong> on the goods and service tax portal along with <strong><em>GSTR-1 and GSTR-3B<\/em><\/strong>. <\/li>\n\n\n\n<li>Another essential requirement is to report the <strong><em>BRC\/FIRC<\/em><\/strong>, also known as <strong><em>Bank Realisation Certificate Number<\/em><\/strong>, for the export invoice. After the process of online submission comes to an end, an application reference number would get generated, and after the due verification, the GST Officer needs to process the refund claim. <\/li>\n\n\n\n<li>The same process follows for claiming the <strong><em>accumulated input tax credit refund<\/em><\/strong> without payment of IGST on the export of goods and services. It initiates with the exporter filing the LUT before leading to any effect on the exports, within settled deadlines. At the time of making the declaration in <strong><em>Table 6A<\/em><\/strong> as well as <strong><em>Table 6B of GSTR-1<\/em><\/strong>, the exporter needs to fill Tax Amounts as Zero. <\/li>\n\n\n\n<li>After the export gets completed, the information regarding the accumulated ITC must be reported to the goods and service tax portal by filing the form RFD-01 to apply for the GST Refund on exports of goods and services. <\/li>\n<\/ul>\n\n\n\n<div class=\"shadow1\">Point to Consider &#8211; Filled invoice-wise in ANX-1 Form and get auto-populated in Returns- RET-1\/ RET-2\/RET-3 under the GST Returns system(The new one) from April 2020. <\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_that_Exporters_get_Under_GST\"><\/span>Benefits that Exporters get Under GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>The refund of IGST paid would get claimed by the\nexporters on exports of numerous types except where specifically unavailable.<\/li>\n\n\n\n<li>Exporters may also claim the refund in cases\nwhere IGST got unpaid on exports under the LUT or bond cover. In a case like\nthat, the accumulated ITC on input services or raw materials used in such\nexports would get refunded.<strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Relevant_Time_Table_for_Several_Types_of_Exports\"><\/span>Relevant Time Table for Several Types of Exports<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The time table for different types of exports are-<\/strong><\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Sr. No. <\/strong>\n  <\/td><td>\n  <strong>Type of Refund&nbsp;&nbsp;&nbsp; <\/strong>\n  <\/td><td>\n  <strong>Details of the Relevant\n  Date <\/strong>\n  <\/td><\/tr><tr><td>\n  1.\n  <\/td><td>   Goods Exported by Sea or Air   <\/td><td>   The date on which the aircraft or the ship wherein such goods get loaded leaves India   <\/td><\/tr><tr><td>\n  2. \n  <\/td><td>   Goods Exported by Post    <\/td><td>   The date when the goods get dispatched by   the post-office to a destination out of India   <\/td><\/tr><tr><td>\n  3. \n  <\/td><td>   Goods Exported by Land    <\/td><td>   The date on which such goods cross the frontier   <\/td><\/tr><tr><td>\n  4.\n  <\/td><td>   Services Received in Advance Before the Invoice Issuance Date   <\/td><td>   Date of invoice issuance&nbsp;    <\/td><\/tr><tr><td>\n  5.\n  <\/td><td>   Completion of Supply of Services Prior to Payment Receipt   <\/td><td>   Payment receipt date in convertible foreign exchange   <\/td><\/tr><tr><td>\n  6. \n  <\/td><td>   Refund of Unutilized ITC in Case of IGST remains Unpaid During Export Time   <\/td><td>   Financial Year End   <\/td><\/tr><\/tbody><\/table>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong>From the relevant date, you can move ahead for making GST Refund\nApplication within two years.<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Take_Away\"><\/span>Take Away <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As there is no single process concerning <strong><em>GST Refund on exports<\/em><\/strong>, it is a lengthy as well as a complex process. Furthermore, it varies from one case to another. In order to deal with the complexities associated, you must have in-depth knowledge about refunds and exports. If you face issues in handling matters concerning the GST Refund on exports and <strong><em>GST Registration<\/em><\/strong>, you must get in touch with <em><a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a><\/em> professionals.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/mechanism-of-advance-ruling-under-gst\/\">\nSynopsis of the Entire Mechanism of Advance Ruling under GST\n\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The claiming concerning the GST Refund on exports would witness a revamp under the new GST Return system. Under goods and service tax regime, exports get considered as zero-rated supplies. The special category of supplies under GST are- exports, deemed exports, supplies to SEZ units, and zero-rated supplies. Since zero-rated supplies fall under the section [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":12099,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[726],"acf":{"service_id":"68"},"authorName":"Margesh Rai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/03\/Margesh.png","authorDescription":"With 10+ years of creative writing experience and 500+ blogs and thought leadership articles to his credit, Margesh Rai has left a significant impact in the field of content marketing. A published author and poet, Margesh Rai has experience writing for 20+ segments, such as Legal, Fintech, SAAS, Dairy, Real Estate, Hospitality, Recruitment, Sustainability, etc.","postViews":5803,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/12092"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=12092"}],"version-history":[{"count":20,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/12092\/revisions"}],"predecessor-version":[{"id":65115,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/12092\/revisions\/65115"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/12099"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=12092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=12092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=12092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}