Explore the detailed guide on exports under GST, including deemed exports, refund processes, and compliance for FY 2025-26.
Meaning of Import and Export of Goods under GST
Meaning of Import and Export of Services under GST
Deemed Exports under GST
Treatment of Exports under GST
Forms for Refund
FAQs on Exports Under GST
Definition of Export of Goods
Export of goods refers to the movement of goods from India to a location outside India.
Defined under Section 2(5) of the IGST Act, 2017.
Goods must physically leave India.
Considered a zero-rated supply under GST.
Definition of Import of Goods
Import of goods involves bringing goods into India from a foreign location.
Defined under Section 2(10) of the IGST Act, 2017.
Subject to IGST at the time of customs clearance.
Customs duty and IGST are applicable.
Zero-Rated Supply
Exports are treated as zero-rated supplies under GST.
No GST is charged on export invoices.
Input tax credit can be claimed.
Refunds can be claimed for unutilized ITC.
Example Calculation
Illustration of tax savings through zero-rated supply.
Export value: ₹10,00,000.
Input tax credit: ₹1,00,000.
Refund claim: ₹1,00,000.
Definition of Export of Services
Export of services involves providing services from India to a recipient outside India.
Defined under Section 2(6) of the IGST Act, 2017.
Payment must be received in convertible foreign exchange.
Place of supply must be outside India.
Definition of Import of Services
Import of services involves receiving services in India from a supplier located outside India.
Defined under Section 2(11) of the IGST Act, 2017.
Recipient must be in India.
Subject to reverse charge mechanism.
Conditions for Export of Services
Specific conditions must be met for services to qualify as exports.
Supplier located in India.
Recipient located outside India.
Payment in convertible foreign exchange.
Example Calculation
Illustration of tax implications for export of services.
Service value: ₹5,00,000.
Input tax credit: ₹50,000.
Refund claim: ₹50,000.
Definition of Deemed Exports
Deemed exports refer to transactions where goods do not leave India, but are considered as exports.
Supplies to EOU/STP/EHTP/BTP.
Payment received in Indian Rupees.
Goods manufactured in India.
Eligible Transactions
Transactions eligible for deemed export status.
Supplies against Advance Authorisation.
Supplies to mega power projects.
Supplies to United Nations agencies.
Benefits of Deemed Exports
Advantages of classifying supplies as deemed exports.
Refund of GST paid on inputs.
No physical export required.
Encourages domestic manufacturing.
Example Calculation
Illustration of benefits for deemed exports.
Supply value: ₹2,00,000.
GST paid: ₹18,000.
Refund claim: ₹18,000.
Zero-Rated Supplies
Exports are treated as zero-rated supplies under GST.
No GST charged on export invoices.
Eligible for input tax credit.
Refunds available for unutilized ITC.
LUT/Bond Requirement
Exporters must furnish a Letter of Undertaking (LUT) or Bond.
LUT/Bond required for zero-rated supplies.
No need to pay IGST on exports.
LUT/Bond valid for one financial year.
Refund of IGST
Procedure for claiming refund of IGST paid on exports.
File Form GST RFD-01.
Submit shipping bill and export invoice.
Refund processed within 60 days.
Example Calculation
Illustration of refund process for IGST on exports.
Export value: ₹15,00,000.
IGST paid: ₹1,35,000.
Refund claim: ₹1,35,000.
Form GST RFD-01
Form used to claim refund of GST for exports.
Applicable for zero-rated supplies.
Submit supporting documents.
Processed within 60 days.
Form GST RFD-11
Form for furnishing LUT/Bond for exports.
Required for zero-rated supplies.
Valid for one financial year.
No IGST payment required.
Form GSTR-3B
Monthly summary return for GST.
Declare export turnover.
Claim input tax credit.
File by 20th of the following month.
Example Calculation
Illustration of refund claim process using Form GST RFD-01.
Export value: ₹8,00,000.
Input tax credit: ₹72,000.
Refund claim: ₹72,000.
What is the definition of export of goods under GST?
Export of goods under GST means taking goods out of India to a place outside India, as defined in Section 2(5) of the IGST Act, 2017. These are treated as zero-rated supplies.
How are exports treated under GST?
Exports are treated as zero-rated supplies, meaning no GST is charged on export invoices. Exporters can claim a refund of the input tax credit used in producing the exported goods or services.
What are deemed exports under GST?
Deemed exports refer to transactions where goods do not leave India, but are considered as exports. Examples include supplies to EOU/STP/EHTP/BTP and supplies against Advance Authorisation.
What is the procedure to claim GST refund on exports?
To claim a GST refund on exports, file Form GST RFD-01 along with supporting documents like the shipping bill and export invoice. The refund is processed within 60 days.
What is the role of LUT/Bond in exports under GST?
Exporters must furnish a Letter of Undertaking (LUT) or Bond to make zero-rated supplies without paying IGST. The LUT/Bond is valid for one financial year.
Can input tax credit be claimed on exports?
Yes, exporters can claim input tax credit on the GST paid for inputs used in producing exported goods or services. This credit can be refunded if unutilized.
What forms are required for GST refund claims?
For GST refund claims, use Form GST RFD-01 for refund applications and Form GST RFD-11 for furnishing LUT/Bond. GSTR-3B is used for monthly GST returns.
How is the export of services defined under GST?
Export of services under GST involves providing services from India to a recipient outside India, with payment received in convertible foreign exchange, as per Section 2(6) of the IGST Act, 2017.
What is the reverse charge mechanism for import of services?
Under the reverse charge mechanism, the recipient of imported services in India is liable to pay GST instead of the supplier. This applies when the supplier is located outside India.
What are the conditions for a supply to qualify as an export of services?
For a supply to qualify as an export of services, the supplier must be in India, the recipient must be outside India, and payment must be received in convertible foreign exchange.