In case of export of goods or services you have two options: -

1. Pay tax (IGST) and claim refund on the same; or
2. Don’t pay any tax and file letter of undertaking or bond

If you have paid IGST on export you do not have to file any application for refund. The shipping bill filed by you at the time of export shall be deemed to be an application of refund subject to the following conditions: -

1. The person in charge of the conveyance carrying the export goods has duly filed export manifest and
2. The applicant has filed GSTR-3B.

A refund is not eligible in the following circumstances: -

1. Where the goods exported out of India are subjected to export duty; or
2. Where the supplier of goods or services or both avails duty drawback.

Yes. Although exports are zero-rated supply, i.e. no tax is payable on them, the exporter can claim Input Tax Credit. Input Tax Credit will be available to the exporter subject to eligibility of such credit. Unutilized amount of ITC can be claimed as refund.

An exporter may claim refund of unutilized ITC by filing form GST RFD-01. Refund is issued only when the refundable amount exceeds Rs. 1,000.

Any registered exporter of goods or services can file Letter of Undertaking (LUT). However, any person who has been prosecuted in cases involving an amount of Rs. 2.5 crores or above is not eligible to furnish LUTs. All other assesses including those who have been prosecuted for an amount of Rs. 2.5 crores or above under the GST law should furnish bonds if the export is being made without payment of IGST.

When an exporter wants to export goods or services without payment of IGST, they may opt to file LUT/ bond in form GST RFD-11. Furnishing of bond or LUT is not required in the case of zero-rated supply of exempted or non-GST goods.

Once the LUT is filed, it shall be valid for the entire financial year. The exporter needs to file LUT in every financial year.

The LUT or bond binds the exporter to pay applicable IGST along with interest, if any, at the rate of 18% within a period of: -

1. 15 days after the expiry of 3 months or such further period as may be allowed by the Commissioner from the date of issue of the invoice for export, if the goods are not exported out of India; or
2. 15 days after the expiry of 1 year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange or in Indian rupees, wherever permitted by the RBI.

The claim of refund may be withheld where: -

1. A request has been received from the jurisdictional Commissioner of Central tax, State tax or Union Territory tax to withhold the payment of refund due to the person claiming refund.
2. The proper officer of Customs determines that the goods were exported in violation of the provisions of the Customs Act, 1962.

An Authorized Signatory can sign and file the verification with DSC/ EVC. Authorized signatory can be the working partner, the managing director or the proprietor or by a person duly authorized by such working partner or Board of Directors of such company or proprietor to execute the form.

Where the tax official does not process the LUT application or provide any notice for clarification within 3 working days, the application will be deemed as approved.