- Exporters and SEZ units are crucial for India’s economy and are treated as zero-rated under GST, meaning no GST is charged on these transactions.
- Businesses still incur GST on inputs and can recover it through the refund process.
- Understanding the GST refund process is essential for compliance and offers strategic value to clients.
- Zero-rated supplies include export of goods or services and supply to SEZ developers or units.
- Suppliers can claim input tax credit on inputs used in zero-rated supplies.
- Two routes for GST refund: with payment of IGST or without payment under LUT.
- Refund of IGST paid on exports involves filing GSTR-1 and GSTR-3B, shipping bill, and EGM.
- Refund is processed automatically through ICEGATE within 7-15 days if data matches.
- Common errors include mismatches in invoice numbers, wrong port codes, and late filings.
- Refund of unutilized ITC under LUT requires filing LUT online, GSTR-1, GSTR-3B, and refund application Form RFD-01.
Source: pkcindia.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.
