GST Export: Ensures Accurate IGST Refund Calculation

IGST Refund, GST Export processes have undergone significant changes, particularly with the introduction of restrictions on export under payment of IGST, effective from 01 October 2023, which allows such exports only for specified classes of persons and goods or services as notified under Section 16(4) of the IGST Act. The exporter must first confirm that their export falls within the notified scope before proceeding with the refund process, which is intricately linked to the shipping bill and the payment of IGST on export invoices.

Key Facts

• Export of goods is considered a zero-rated supply under GST.
• Two routes for refund are available: export under LUT/Bond without IGST payment and claiming refund of unutilized input tax credit, or export on payment of IGST and claiming refund of the IGST paid.
• Effective from 01 October 2023, export on payment of IGST is allowed only for notified classes of persons and goods or services under Section 16(4) of the IGST Act.
• The refund amount is based on IGST paid on export invoices linked to a shipping bill, subject to caps and legal bars.
• Rule 96 of the CGST Rules outlines conditions for refund, including export confirmation and filing of a valid GSTR-3B.
• The GST officer intervenes in cases where the refund is withheld or when additional IGST is claimed after export.
• Notification dated 08 October

Reference: Click here to view the official source