Procedures of Export under GST Regime

GST is the largest revolution in Indirect Taxation – One Country One tax. The word GST has been known to each and every person in India as it has been in headlines for many days. After evolution of GST in India major Central and State taxes (like excise duty, Service tax and VAT) merged into one tax i.e GST.

This uniformity in the tax rate and common procedures will not only reduce the product cost but also significantly reduce the compliance cost. In the GST regime complete and comprehensive input set off of input goods & services would reduce the cost of manufacturing the goods & services.

This will increase the competitiveness of Indian goods and services in the international markets by increasing the Indian exports. The exports under GST regime is considered as zero rated inter- state supply. The procedure for the export is explained herein below.

At present, the exporters have two Options as to either export under Bond/Letter of Undertaking (LUT) without payment of IGST tax followed of unutilized Input Tax Credit (ITC) or on payment of integrated with provision for refund of.


Option 1 (Bond or LUT concept)
Option 2 (Payment of IGST concept)
Any person (i.e Exporter) can Export goods or services without payment of IGST under Bond or LUT concept and claim refund of unutilized ITC by making application. Any person (i.e Exporter) can Export goods or services on payment of IGST and claim refund of the tax paid Export supply under section 54(refunds) of CGST Act.



  1. The Bond or LUT to be executed prior to export of goods or services.
  2. The Bond or LUT shall be executed in the Form GST-RFD- 11 to the jurisdictional Commissioner of GST.
  3. There is no provision for continuing the existing bond or LUT.
  4. The Earlier procedure of ARE-1 is dispensed now
  5. This procedure is applicable for both export of goods or services or both.
  6. The information of export of goods/services to be furnished in the Form GSTR-1 (Rule 96A of CGST Rules, 2017)
  7. The details of export of goods/services furnished in the Form GSTR-1 to be confirmed as exported out of India by the Customs (Rule 96A of CGST Rules)
  8. Refund of unutilized ITC can be claimed electronically through the common portal, either directly or through a notified Facilitation Centre,  for each tax period under  the Form GST-RFD-1
  9. Documents Required for claiming the refunds:


For goods: Invoice of Export and Shipping Bill / Bill of Export, is mandatory.


For services: Invoice of Export and Foreign Inward Remittance Certificate, is mandatory

  1. The Conditions for claiming refund:
  2. The drawback of any central tax on such goods or services has not been claimed by the exporter.
  3. The refund of IGST paid on outward supply is not claimed.
  • The exporter can file the application of refund of ITC only after the export general manifest or export report is delivered in respect of such goods.
  1. Exported goods are not subject to export duty.
  2. The return of GST for the relevant tax period is filed

The Provisional refund of 90% of claimed refund shall be granted within 7 days from the date of acknowledgement of complete application of refund.

Final refund to be granted within 60 days of acknowledgement


Important point to be considered in to Bond or LUT concept
  • The exporter shall be bind himself to pay the tax along with interest under bond or LUT if the following conditions are not satisfied by him:
    1. If the goods are not exported within 3 months from the date of invoice, such exporter shall be liable to pay tax along with interest within 15 days after expiry of 3 months.
    2. If payment in foreign exchange for the services exported is not received within 1 year from the date of invoice, such exporter shall be liable to pay tax along with interest within 15 days after the expiry of 1 year.


  1. The Exporter can claim refund of IGST paid on export of goods or services.
  2. The Refund of tax paid on services exported to be claimed under Form GST-RFD-1
  3. Registered person are not required to file any separate refund application for refund of IGST paid on the goods exported out of India. Hence the shipping Bills having inter-alia GST invoice details shall be deemed to be a refund application.
  4. Such application shall be deemed to be filed only when the export manifest/report is delivered by person in charge of the conveyance.
  5. The exporter is required to furnished the Return in FORM GSTR-3
  6. The details of relevant export invoices contained in FORM GSTR-1 shall be transmitted electronically by common portal to the custom system and then the custom system transmit back to common portal a confirmation that the goods covered by invoices have been exported.
  7. If common portal gives confirmation about furnishing of valid return in FORM GSTR-3, then customs system shall process the refunds. Hence Refund shall be granted by Customs authorities.
  8. The refunds application shall be governed by the provisions of the Sec-16 of the IGST Act.



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