Navigating the world of GST refunds in India can be overwhelming —especially for exporters of services. Whether you’re exporting with or without the payment of tax (under LUT), knowing the right steps can ensure timely refunds and smoother compliance. This blog aims to simplify the GST Refund process for Exporters of Services, breaking it down into two key categories

        A) Export with Payment of Tax

        B) Export without Payment of Tax (using LUT)

Let’s dive in.

What is Export of Services under GST?

Export of services refers to any supply of services that satisfies the following five conditions:

1. 1. The supplier is located in India.
   2. The recipient is located outside India
   3. The place of supply is outside India
   4. Payment is received in:
   5. Convertible foreign exchange, or
   6. Indian Rupees where permitted by RBI
   7. The supplier and recipient are not related, or if related, the transaction is at arm’s length

Note: Exports are considered zero-rated supplies under GST, which makes them eligible for refunds.

GST Refunds on Exports: Two Options

Type	Output Tax Charged	Refund Eligibility
With Payment of Tax	Yes (IGST)	Refund of paid IGST
Without Payment of Tax (LUT)	No	Refund of accumulated ITC

Exports with Payment of Tax: Step-by-Step Process

Example

• • Export Invoice: ₹100

• • GST Rate: 18% → GST Payable: ₹18

• • Input Tax Credit (ITC): ₹12

• • Net Payable: ₹6 (can be paid via ITC or Cash Ledger)

• • Refund Claim: ₹18 (full IGST)

📌 Steps to Claim Refund

1. File GST Returns

• • Login to the GST portal

• • Go to Returns > Return Dashboard

• • Select GSTR-1 and navigate to 6A – Export Invoices

• • Enter:
    
    • • Invoice Date, Number, Value (Tax + IGST)
    • • Type: Inter-State
    • • GST Payment: With Payment of Tax
    • • Taxable Value

• • Save and file

• • Don’t forget to file GSTR-3B for outward liability

2. File Refund Application (Form RFD-01)

• • Go to Services > Refunds > Application for Refund

• • Choose Export of Services with payment of tax

• • Select Tax Period (note: refunds can’t be claimed for periods over 2 years old)

• • Upload required documents:
    
    • • Export Invoices, BRC/FIRC
    • • GSTR-1, 3B, 2B
    • • Statement of Invoices (Annexure 1)
    • • Declaration – Rule 89(2)(l)
    • • CA Certificate (only if refund > ₹2,00,000 and applicant is not a PSU/Govt)
    • • ITC balances

✅ Max 15 supporting docs, each ≤ 5MB

3. Verification & Refund Credit

• • GST officer reviews and verifies application

• • If approved, refund of IGST is credited to your bank

• • Track via Refunds > Track Application Status

• • Refund should be processed within 60 days, else 6% interest is payable

✉️ Exports Without Payment of Tax (Using LUT)

📊 Example

• • Export Invoice: ₹100 (no GST charged)

• • Output Tax Liability: ₹0

• • Accumulated ITC: ₹12 → Eligible for refund of ITC

📌 Steps to Claim Refund

1. File / Renew LUT

• • Go to Services > User Services > View my submitted LUT

• • Select Application Type: Letter of Undertaking

• • Choose financial year, upload previous LUT if applicable

• • Agree to declarations, provide witness & authorized signatory details

• • Sign using DSC or EVC

2. File GST Returns

• • File GSTR-1 > Section 6A – Export Invoices:
    
    • • Invoice Date, Number, Value
    • • Type: Inter-State
    • • GST Payment: Without Payment of Tax

• • File GSTR-3B ensuring proper ITC details

3. File Refund Application (Form RFD-01)

• • Go to Services > Refunds > Application for Refund

• • Select Export of Services without payment of tax

• • Choose refund type and tax period

• • Upload documents:
    
    • • Annexure B, Declaration
    • • GSTR-1, 3B, 2B
    • • Export Invoices
    • • Remittance Proof
    • • ITC balances
    • • LUT Number

✅ Same upload limits apply: 15 documents max, each ≤ 5MB

4. Verification & Refund Credit

• • GST officer checks application

• • On approval, accumulated ITC is credited to your bank

• • Track via GST Portal → Track Application Status

• • Refund must be issued within 60 days, failing which 6% interest applies

🧠 Pro Tips

• • 💯 Accuracy is critical – double-check decimal values and entries in GSTRs

• • ⏳ Apply refunds timely – delay may result in rejection or loss of eligibility

• • 📅 Track deadlines – refunds can’t be claimed for periods over 2 years ago

• • 📤 Maintain documentation – keep copies of LUT, declarations, and invoices organized

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💼 Final Thoughts

Whether you’re exporting services with tax or under LUT, understanding the refund mechanism under GST is key to ensuring your cash flow isn’t stuck in limbo. The process may be detailed, but following the right steps can significantly reduce errors, rejections, and delays.