- Export of services under GST is zero-rated, allowing exporters to claim input tax credit (ITC) refunds.
- A service qualifies as an export only if all five conditions under Section 2(6) of the IGST Act are met: supplier in India, recipient outside India, place of supply outside India, payment in foreign currency or permitted INR, and other legal requirements.
- Exporters can choose to export under LUT (without IGST payment) or pay IGST and claim a refund, based on cash flow needs.
- Accurate documentation (BRC/FIRC, LUT, invoices, GST returns) is crucial for timely GST refunds and compliance.
- Understanding place of supply rules is essential to correctly classify exports and avoid issues during refund claims.
Source: razorpay.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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