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.

Author Bio

Qualification: Other
Company: DBRRM & ASSOCIATES (GST Practitioner)
Location: noida, Uttar Pradesh, IN
Member Since: 03 Jun 2019 | Total Posts: 4
My Self working as GST Practitioner under GST Law provision. I have 15 year of rich experience with big corporate. View Full Profile

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  1. Sanjay says:

    सर् जी हमने जुलाई 2017 से जून 2019 तक LUT पर एक्सपोर्ट किया और कोई भी रिफंड क्लेम नही किया लेकिन फिर आपका आर्टिकल पढ़ कर जुलाई 2019 से एक्सपोर्ट IGST के साथ किया और पिछला सारा ITC एडजस्ट करके रिफंड आ गया एकाउंट में ।। ये कुछ गलत तो नही है हम LUT और IGST दोनों पर एक साथ एक्सपोर्ट कर सकते है ।।

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October 2021