GST Refund — Export of Services

Expert GST Refund Services for Service Exporters — Accumulated ITC Refund and Zero-Rated Supplies

Export of services is a zero-rated supply under GST — service exporters do not charge GST to their foreign clients but are entitled to claim a refund of GST paid on inputs used in providing those services. Like goods exporters, service exporters can either export with payment of IGST (and claim a subsequent refund) or export under a Letter of Undertaking (LUT) without IGST payment and claim a refund of accumulated input tax credit. The conditions for a supply to qualify as export of services — particularly the requirement to receive payment in convertible foreign exchange — are critical and must be satisfied for refund eligibility. Caselaadvisors provides complete GST export of services refund advisory and filing services.

What is GST Refund for Export of Services?

Under Section 16 of the IGST Act, the export of services is a zero-rated supply. A supply qualifies as 'export of services' under GST when: (1) the supplier is in India; (2) the recipient is outside India; (3) the place of supply is outside India; (4) the payment is received in convertible foreign exchange or Indian rupees where permitted by the RBI; and (5) the supplier and recipient are not merely establishments of the same person. Service exporters filing under LUT can claim a refund of ITC accumulated on inputs (including domestic professional services, rent, electricity, IT services, and other inputs) used in providing the exported services.

Export of services qualifies as zero-rated supply under IGST Act
Payment in convertible foreign exchange is a key eligibility condition
LUT-based export allows refund of accumulated ITC on all inputs
FIRC / BRC from bank required as evidence of foreign exchange receipt
Proportionate ITC refund where exporter also makes domestic taxable supplies

Our Services

LUT Filing for Service Exporters

Annual LUT filing for service exporters — allowing export of services without payment of IGST and enabling ITC refund claim on inputs used in providing those services.

Foreign Exchange Compliance Review

Reviewing FIRC / BRC from bank, export invoices, and agreement with foreign client to confirm all conditions for 'export of services' under GST are satisfied before filing refund.

RFD-01 Refund Application

Preparation and filing of GST RFD-01 for ITC refund — including correct calculation of eligible ITC, statement of invoices, proportionate ITC calculation where mixed supplies exist, and supporting documents.

Proportionate ITC Calculation

Where a service exporter also makes domestic taxable supplies, calculating the eligible refund as the proportionate ITC attributable to export services — applying the correct formula under Rule 89 of GST Rules.

Refund Order Tracking

End-to-end tracking of refund applications — responding to RFD-03 deficiency memos, following up on RFD-02 acknowledgements, and ensuring timely credit of refund to the exporter's bank account.

Notice Response

Responding to notices from GST authorities questioning export of services eligibility — clarifying place of supply, foreign exchange receipt conditions, and supporting with documentation.