How to get refund of GST tax paid by an Exporter?

Posted on 10 April 2023     Category : GST

 

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How does GST tax refund work under Export transactions?

 

How to get refund of GST tax paid by an ExporterIn this post the details on refund of Goods and Service Tax paid in exports are explained.


Let us discuss the tax refund system to exporter at present:


There are three options to get refund of taxes paid by an exporter on exported goods:


1. Obtaining non duty paid inputs and exporting final product without payment of duty.


2. Obtaining duty paid inputs and claiming refund of the same at the time of export of the finished goods without payment of duty.


3. Obtaining duty paid inputs, availing the input tax credit thereon and exporting finished goods after payment of duty (after utilizing such input tax credit) and thereafter claiming the rebate of the duty paid on exported goods.
 

How to get refund as per GST system of refunds to exporter?
 

It is recommended that the first option mentioned above i.e. option to procure duty free inputs for exported goods should not be available in the GST regime. This would obviate the requirement of submission of statutory form and the supplier of goods to the actual exporter would be required to pay the GST and will not be required to comply with various formalities presently required for making tax free supplies.


It is further recommended that other two options may be made available to the exporter in the proposed GST regime. It is recommended that GST Law drafting Committee may provide for the provision of rebate and the legality of the same will be examined at the time of vetting of the GST law by the Law Ministry.

 

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The details on how to get refund of GST tax to exporter is given above.

 

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Comments


Sudhagar: On 05 July 2017 1) Exports of goods on payment of IGST and file refund.... it means 100Pct of IGST paid has been granted to refund ?? 2) If exports of goods under Bond / LUT to be furnished (As per new notification of 1st July, 2017) whether existing running BOND/LUT will be used or New BOND / LUT must get.. to avail export of goods without payment of IGST... ? 3) If apply for new BOND/LUT as per new notification it is mentioned to provide Bank Guarantee .... (Obtain bank guarantee from bank, there charges min. 5 pct to 10 pct on BG amount it means to get 5 Lacs Bank Guarantee on that the bank charges will be Rs. 50000).... So FDR (Fixed Deposit infavour of Authority) or RCMC (membership certificate) can be used in place of BG.... Kindly clarify...

Abdul Rashid: On 30 July 2017 We are into export of readymade garments. Previously all our purchases were tax free ie. We provided Form H to all our suppliers. Now under GST how would we claim the refund of gst paid by us as post 1.7.2017 all suppliers are charging GST on the garments which are to be exported. Secondly what will be the procedure to export our old stocks which are manufactured before implementation of gst. Ie.prior to 30.6.2017 but are being exported now in July and August. Those goods were already purchased against Form H so no vat or any tax was paid on those garments. Kindly clarify the above. Thanking you in anticipation.

sulabha gawali: On 03 September 2017 Hello, We are exporter from Mumbai. exporting fresh Indian Fruits & Vegetables from India to Canada. Now, we are paying 18% IGST on Freight & box of packaging which affecting on our principle fund & profits too. Kindly confirm that, can we get refund of GST (18 per cent) which we paid for air freight & box packaging. or what is alternative option to not pay GST For air freight & box. There is no GST on sales as we export Fresh Indian produces which are tax free. Awaiting for your positive reply. Thanks & Regards, Mrs. Sulabha Gawali +918655560033 sulabha@krisulaglobexim.com

damola: On 23 June 2022 In September, I did roughly $50k imports from the USA. And hoping to do x2 of that monthly sales within the next 12 months. Using my NY freight forwarder, however I had to pa 8.86% NY sales tax when I order online . I am hoping to reclaim this taxes back else I cannot be able to import more items than I should have. Does setting up a business help reclaim this tax back? What’s the step by step guide to getting this tax back? Can I get the ones I have already purchased and can show is already left the USA ? With invoices etc What is the cost implication of setting this up I will appreciate your feedback ASAP

srinivas: On 04 July 2022 I have a small clarification iam importing some items from Singapore to india and exporting the same to US Can I avail input credit on the purchase . after submitting claim how much time it will take for getting the credit I Will be grateful to you if give advice on this sir

rudra: On 09 July 2022 I am planning to import mono calcium phsphate [HS CODE 28352610] poultry feed supplement from China or from any other country. The above mentoned products attracts 0% gst [ this product falls of exempted goods wth 0% GST]. While importing the PRODUCT we have to pay customs duty of 7.5% and IGST 18%, but at the time of

binu: On 16 July 2022 I am a tyre exporter and have a query and looking forward to your valuable views. 1. We purchased tyres from Ceat on Dec 2018. They said the billing will be done on 24th. 2. Based on that we prepared our export documents with invoice dated 24/012/2018 and booked for export. Since the delivery was to a CFS in Mumbai, the booking had to be done. 3. Shipping bill is dated 26/12/2018 4. However the invoices from Ceat is dated 26th, 27th and 28th Dec 2018 as per their delivery. 5. We have filed LUT and needs to file for IGST refund. Do you think this will have any implications for our refund. If so what shall we do.

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