Export Unit can export the goods without paying GST. Export are coming under Zero rate supply. Export oriented unit can export the goods on three basis.

1. Export on LUT

2. Export under Bond

3. Export by paying Tax.

Export on LUT : LUT is referred  to Letter of Undertaking. Any Exporter Can apply for LUT via GST  and export their Goods without paying Tax.

Export under Bond : Exporter can submit Bond and make their export without paying tax.

Export by paying Tax : Exporter can make export by paying IGST on their export supply. after paying the tax they can get refund on their export.

Normally all the exporter make their export supply by without paying Tax. Means maximum of them supply under Letter of Credit or Bond. 

So on the purchase of Raw material they are paying Tax . After certain period all the Input accumulate and standing a huge Amount as Input Tax Credit.

Now there are two option to utilize this standing Input tax Credit .

1. Apply for Refund with GST Department and get your refund.

2. Make Export of Goods by paying Tax and Utilize Standing Input Tax Credit.

Here we will discuss on second point like exporting the goods by paying IGST and Take refund for the same from ICEGATE.

If  any export unit do not want to take refund for standing ITC , in that case they can utilize their ITC.

Start selling of export of Goods by paying IGST.

Payable IGST can be adjusted with standing Input Tax Credit .

As soon as you submit your GSTR 3B , Tax paid information transmitted to ICEGATE. and Paid amount directly refunded to your Bank Account. 

So It is very simple to Utilize your Input Tax credit and get refund from Department.

If you have any query please inform.

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Company: DBRRM & ASSOCIATES (GST Practitioner)
Location: noida, Uttar Pradesh, IN
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    1. rajnish_singh54@rediffmail.com says:

      Exporters are entitled to obtain the refund of CGST + SGST / UTGST or IGST paid on inward supplies, when such inward
      supplies are used for the purpose of export of goods or services or both. Similarly, exporters are also entitled to obtain
      the refund on IGST paid on exports on outward supplies of goods or services or both. It is ensured incidence of tax is not
      borne by the exporters.
      CBIC has issued the most awaited clarification vide circular number 45/19/2018 GST dtd. 30.05.2018. Highlights of the said
      circular are given below:
      1. The said restriction is not applicable to an exporter who has procured goods from suppliers who have not
      availed the benefits of the specified notifications for making their outward supplies. Further, the said restriction
      is also not applicable to an exporter who has procured goods from suppliers who have, in turn, received goods
      IGST Paid on Outward
      Rule 96
      CGST + SGST / UTGT or IGST
      Paid on Inward Supplies
      Rule 89
      Based on the
      Rule 89(4)
      Refund claimed on ITC
      paid on Inward Supplies
      (Deemed Exports)
      Rule 89(4A)
      Refund on claimed on ITC
      paid on Inward Supplies by
      EOU, Merchant Exporters &
      Advance Authorisation
      Rule 89(4B)
      Eligible for all exporters,
      who have not received the
      supplies from
      1.Supporting manufacturer
      who has paid concessional
      rate of duty
      2. Who has not received the
      supplies from Advance
      Authorization Holder or
      EPCG Holder or EOU
      Eligible for all exporters to get
      the proportionate refund based
      on net ITC and total turnover
      and export turnover. Net ITC do
      not include the inward supplies
      on which refund has been
      availed under Rule 89 (4A) and
      Rule 89(4B).
      Supplies made on payment of
      GST to Advance Authorization /
      EPCG Holder / EOU and
      recipient or supplier can get the
      refund of such amount paid
      against tax invoice. However,
      system has been designed only
      to claim refund of such amount
      paid on inward supplies of
      goods by recipient only.
      Refund of GST paid on inward
      supplies by EOU who has
      claimed the benefit of
      exemption of Basic Custom
      Duty and IGST under
      Notification No 78/2017 Cus or
      Advance Authorization Holder
      claiming exemption of Basic
      Custom Duty & IGST under
      Notification No. 79/2017 Cus or
      Merchant Exporter receiving
      the goods at concessional rate
      of duty @0.1%
      Refund of GST paid by Exp

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December 2020