IGST refunds on Exports – Required Documents and FAQs

There is no need for filing a separate refund claim as the shipping bill filed by the exporter is itself treated as a refund claim. As per rule 96 of the CGST Rules, 2017, the shipping bill filed by an exporter shall be deemed to be an application for refund of integrated tax paid on the goods exported out of India and such application shall be deemed to have been filed only when:-

1. The person in charge of the conveyance carrying the export goods duly files an export manifest or an export report covering the number and the date of shipping bills or bills of export; and
2. The applicant has furnished a valid return in FORM GSTR-3 or FORM GSTR3B, as the case may be.

Upon receipt of the information regarding the furnishing of a valid return in FORM GSTR-3 or FORM GSTR-3B, as the case may be and FORM GSTR-1 from the common portal, the system designated by the Customs shall process the claim for refund and an amount equal to the integrated tax paid in respect of each shipping bill or bill of export shall be electronically credited to the bank account of the applicant mentioned in his registration particulars and as intimated to the Customs authorities.

Under this category also, the supplier may choose to first pay IGST and then claim refund of the IGST so paid. In these cases, the suppliers will have to file refund claim in FORM GST RFD – 01 on the common portal, as per Rule 89(1) of the CGST Rules, 2017. Service Exporters need to file a statement containing the number and date of invoices and the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates, as the case may be, along with the refund claim. In so far as refund is on account of supplies made to SEZ, the DTA supplier will have to file the refund claim in such cases. The second proviso to Rule 89(1) stipulates that in respect of supplies to a Special Economic Zone unit or a Special Economic Zone developer, the application for refund shall be filed by the –

1. Supplier of goods after such goods have been admitted in full in the Special Economic Zone for authorised operations, as endorsed by the specified officer of the Zone;
2. Supplier of services along with such evidence regarding receipt of services for authorised operations as endorsed by the specified officer of the Zone.

*As per sec 16(1) of IGST Act any supplies made by a registered dealer as an export (Both goods or services) or supply to an SEZ qualifies for Zero Rated Supplies in GST. The supply to a developer of an SEZ is also covered under Zero-Rated Supplies in GST as no tax is levied on these supplies as well.

**A refund once applied has to be paid within 60 days from the date of receipt of complete refund application. Beyond that time frame, an interest of 6% has to be paid to the applicant.

Here are documents required to claim IGST refunds :

• IEC (Import Export Code)
• Purchase orders relevant to the export transaction
• Tax invoices with details such as:-
  • Indication if the export is made with or without payment of the integrated tax.
  • Exporter’s address, name and GSTIN.
  • Number and date of the invoice.
  • Recipient’s name and address, along with the destination country and delivery address.
  • Harmonized System of Nomenclature (HSN) code of goods, along with their description.
  • Size and amount of the shipped goods indicating the number of units.
  • The sum of the value of all the goods along with a breakdown of cost per unit.
  • Signature of the exporter or an authorised signatory.
  • A shipping bill with details matching the tax invoice.