Methods to be followed to claim unutilized input tax credit on Zero-Rated

exports & Refund of IGST

Export of
Goods

Without
With Payment
Payment of
of IGST
IGST

Under LUT Under Bond Refund of IGST

In all the above cases refund of

unutilized input tax credit can be claimed

Tax to be charged when goods are sold to merchant exporter:

1. The central govt. exempts inter-state supply of taxable goods by a registered person
(Gujarat Seller) to a registered recipient (Joy Dzign) for export, from so much of the
integrated tax leviable thereon under section 5 of the Integrated Goods and Services Tax
Act, 2017, as is in excess of the amount calculated at the rate of 0.1 %.
In simple words, IGST shall be leviable @0.1%.
2. The central govt. exempts intra-state supply of taxable goods by a registered person to a
registered recipient for export, from so much of the integrated tax leviable thereon under
section 5 of the Integrated Goods and Services Tax Act, 2017, as is in excess of the amount
calculated at the rate of 0.5 %.
In simple words, IGST shall be leviable @0.5%.
3. Subject to fulfilment of the following conditions, namely: -
a. the registered supplier shall supply the goods to the registered recipient on a tax
invoice;
b. the registered recipient shall export the said goods within a period of ninety days
from the date of issue of a tax invoice by the registered supplier;
c. the registered recipient shall indicate the Goods and Services Tax Identification
Number of the registered supplier and the tax invoice number issued by the
registered supplier in respect of the said goods in the shipping bill or bill of export,
as the case may be;
d. the registered recipient shall be registered with an Export Promotion Council or a
Commodity Board recognised by the Department of Commerce;
e. the registered recipient shall place an order on registered supplier for procuring
goods at concessional rate and a copy of the same shall also be provided to the
jurisdictional tax officer of the registered supplier;
 f. the registered recipient shall move the said goods from place of registered supplier
i. directly to the Port, Inland Container Deport, Airport or Land Customs
Station from where the said goods are to be exported; or
ii. directly to a registered warehouse from where the said goods shall be move
to the Port, Inland Container Deport, Airport or Land Customs Station from
where the said goods are to be exported;
g. if the registered recipient intends to aggregate supplies from multiple registered
suppliers and then export, the goods from each registered supplier shall move to a
registered warehouse and after aggregation, the registered recipient shall move
goods to the Port, Inland Container Deport, Airport or Land Customs Station from
where they shall be exported;
h. in case of situation referred to in condition (g), the registered recipient shall endorse
receipt of goods on the tax invoice and also obtain acknowledgement of receipt of
goods in the registered warehouse from the warehouse operator and the endorsed
tax invoice and the acknowledgment of the warehouse operator shall be provided to
the registered supplier as well as to the jurisdictional tax officer of such supplier; and
i. when goods have been exported, the registered recipient shall provide copy of
shipping bill or bill of export containing details of Goods and Services Tax
Identification Number (GSTIN) and tax invoice of the registered supplier along with
proof of export general manifest or export report having been filed to the registered
supplier as well as jurisdictional tax officer of such supplier.

Case I: Export of goods with payment of IGST

A. How to obtain refund of IGST paid on exports u/r 96 of CGST Rules

1. No need to file a refund application separately as the shipping bill filed is a refund claim
in itself subjected to the following conditions
a. Person-in-charge of conveyance should file an export manifest and
b. Applicant should have done appropriate filing of GSTR 3 or GSTR 3B as the case
maybe
B. Claiming unutilized input tax credit
a. Filing should be done in GST RFD-01 on a monthly basis

Case II: Export of goods without payment of IGST

A. Under LUT
a. Eligibility: - As per Notification no 30/2017-Central Tax dated 04-10-2017, the facility
of Letter of Undertaking has been extended to all registered dealers with necessary
safeguards as below-

“all registered persons who intend to supply goods or services for export without
payment of integrated tax shall be eligible to furnish a Letter of Undertaking in
place of a bond except those who have been prosecuted for any offence under the
Central Goods and Services Tax Act, 2017 or the Integrated Goods and Services Tax
 Act, 2017 or any of the existing laws in force in a case where the amount of tax
evaded exceeds two hundred and fifty lakh rupees;”
b. Documents required: - No documents are required to be uploaded in case of LUT,
other than the copy of previously filed LUT, if any. Entire filing is done online.
i. Form GST RFD-11
ii. Letter of Undertaking in duplicate on Non-Judicial Stamp paper of Rs. 100
iii. GST Registration Certificate
iv. Authorisation letter of Authorized signatory along with ID proof of the
authorised signatory
v. Copy of Import Export Code (IEC) Certificate
vi. Copy of Certificate of Incorporation with MOA/AOA of the Company
vii. Copy of PAN card of the applicant
viii. ID proof of two witnesses (self-attested by witnesses)
c. Validity: - LUT is valid for a period of one year (till the end of financial year)

B. Under Bond
a. Eligibility: - For all other assesses (along with the ones who have been prosecuted
for tax evasion of Rs. 2.5 crores or above under the GST laws), bonds should be
furnished if the export is being made without payment of IGST.
b. Documents required: - All the documents are to be submitted to the department
manually.
i. Form GST RFD-11
ii. Bond on Non-Judicial Stamp Paper
iii. Bank guarantee
iv. Authorisation letter of Authorized signatory along with ID proof of the
authorised signatory
v. Copy of Import Export Code (IEC) Certificate
vi. Copy of Certificate of Incorporation with MOA/AOA of the Company
vii. Copy of PAN card of the applicant
viii. ID proof of two witnesses (self-attested by witnesses)
c. Validity: - Either a separate bond for each consignment is to be furnished or a
Running Bond can be furnished. In case of a Running bond, the exporter carries
forward the same terms and conditions in the bond for the next consignment. On
fulfilling the condition in the bond, the amount is freed up and can be used for next
transactions for export.