Posted By: Admin Published: 09-07-2025

Exporting services is a significant aspect of the Indian economy, and the Goods and Services Tax (GST) framework provides specific provisions for refund claims on such exports. This guide by Tripathi & Arora Associates outlines the step-by-step process for claiming a refund of GST on export of services, highlighting essential procedures, documentation, and frequently asked questions.

Understanding GST on Export of Services

What is GST on Export of Services?

Under the GST regime, export of services is treated as a supply of goods and services that is zero-rated. This means that while the supply is subject to GST, the applicable rate is 0%. Exporters can claim a refund of the input tax credit (ITC) on inputs and input services used in providing these exported services.

Key Features of GST on Export of Services

1. Zero-Rated Supply: Export of services is classified as zero-rated under Section 16 of the IGST Act, 2017.
2. Input Tax Credit: Exporters can claim ITC for taxes paid on inputs and input services.
3. Refund Process: The refund of ITC can be claimed following specific procedures, which are detailed below.

Refund Requirements for GST on Service Exports

• Zero-Rated Supply: The service must qualify as a zero-rated supply under GST.
• Registered Exporter: The exporter must be registered under GST and have a valid GSTIN.
• Proof of Export: Necessary documentation, such as shipping bills or invoices, must be provided to substantiate the export.
• Utilization of Inputs: Input tax credit must be accumulated on inputs or input services used for the export of services.

Documents Needed to Support Form RFD-01 Filing

• GST Registration Certificate: A copy of the GST registration of the exporter.
• Export Invoices: Copies of invoices for the exported services detailing the amounts and descriptions.
• Shipping Bills: Documentation evidencing the export of services, such as shipping bills or bills of lading.
• Bank Realization Certificates: Proof of receipt of payment in foreign exchange for the exported services.
• Input Tax Credit Statements: Documents showing the ITC claimed on inputs used for the exported services.
• Payment Receipts: Evidence of GST payments made on inputs and services utilized.

Read More: Step-by-Step Guide to GST Registration Process for Businesses

Step-by-Step Process for Claiming GST Refund on Export of Services

Step 1: Ensure Eligibility for Refund

Before proceeding with the refund application, ensure that:

• You are a registered taxpayer under GST.
• The services exported qualify as per the definition of "export of services" under Section 2(6) of the IGST Act.
• You have paid the applicable GST on inputs and input services.

Step 2: Maintain Proper Documentation

Collect and prepare the necessary documents required for the refund application:

1. Export Invoices: Copies of invoices related to the exported services.
2. Proof of Payment: Bank statements or documents showing receipt of payment in convertible foreign exchange.
3. Shipping Bills: If applicable, for services that require documentation like shipping or freight.
4. GST Returns: Copies of filed GST returns for the relevant period.
5. ITC Statement: A statement reflecting the details of input tax credit claimed.

Step 3: File GST Returns

Ensure that all GST returns for the relevant period are filed. This includes:

• GSTR-1: Details of outward supplies.
• GSTR-3B: Summary of outward and inward supplies along with tax liability.

Step 4: Prepare the Refund Application

1. Access the GST Portal: Log in to the GST portal using your credentials.
2. Navigate to the Refund Section: Select the option for “Refunds” from the main menu.
3. Choose the Type of Refund: Select “Refund of ITC for Zero-rated Supplies” to initiate the application for GST refund on export of services.

Step 5: Fill in the Refund Application Form

Complete the refund application (FORM GST RFD-01):

1. Basic Details: Provide details such as GSTIN, name, and address.
2. Refund Amount: Specify the amount of ITC claimed as a refund.
3. Bank Details: Provide the bank account details where the refund should be credited.

Step 6: Upload Supporting Documents

Attach the necessary documents to support your refund claim. This includes:

• Export invoices
• Proof of payment
• GST returns
• ITC statement

Step 7: Submit the Application

Once all information is filled in and supporting documents are attached, submit the refund application. The system will generate an acknowledgment receipt, which should be saved for future reference.

Step 8: Track the Refund Application Status

After submission, you can track the status of your refund application through the GST portal:

1. Go to the “Track Application Status”: Enter the application reference number to check the status.
2. Updates: You will receive updates regarding the processing of your application.

Step 9: Respond to Queries (if any)

The tax authorities may raise queries regarding your refund application. Respond to these queries promptly with the required information or additional documentation.

Step 10: Receive the Refund

Upon successful verification and processing of your application:

• The refund will be credited to your designated bank account.
• You will receive a communication regarding the sanction of the refund.

Read More:  GST Registration Online 2025  

Challenges in the Refund Process

1. Documentation Issues

Incomplete or incorrect documentation can lead to delays or rejections of refund claims. Ensure that all documents are accurate and properly organized.

2. Delays in Processing

The refund processing time can vary, and delays may occur due to various reasons, including verification processes or backlog at tax authorities.

3. Compliance with Deadlines

Timely filing of returns and applications is crucial. Ensure that all relevant deadlines are adhered to avoid penalties.

Conclusion

Claiming a refund of GST on the export of services is a vital process for businesses engaged in international trade. By following the step-by-step process outlined in this guide, exporters can ensure that they comply with the necessary requirements and receive timely refunds for input tax credits.

If you need assistance with the GST refund process or have specific queries, consider reaching out to Tripathi & Arora Associates. Our team of experts is dedicated to helping you navigate the complexities of GST and ensure compliance with all regulatory requirements.

Read Also: GST on Intermediary Services: Complete Guide 2025  

FAQ Refund of GST on Export of Services

1. Who is eligible to claim a GST refund on export of services?

Any registered taxpayer providing export services can claim a GST refund, provided they have paid the applicable GST on inputs and input services.

2. What documents are required for claiming a refund?

Required documents include export invoices, proof of payment in foreign exchange, GST returns, and a statement of input tax credit claimed.

3. How long does it take to process a GST refund application?

The processing time may vary, but typically it can take anywhere from 30 to 60 days after submission of the refund application.

4. What if my refund application is rejected?

If your application is rejected, the tax authorities will provide reasons for the rejection. You can rectify the issues and reapply for the refund.

5. Can I claim a refund if I have not exported any services in the current financial year?

No, you can only claim a refund for the period in which you have exported services and incurred input tax.

6. Is there a specific format for the refund application?

Yes, the refund application must be submitted in FORM GST RFD-01 through the GST portal.

7. Can I claim a refund of GST paid on capital goods used for providing export services?

Yes, you can claim a refund of GST paid on capital goods if they are used in the provision of exported services.  

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