GST for Exporters: Zero-Rated Supplies & Documentation Tips (Complete Guide)

Exporters in India enjoy special benefits under GST, but only if they clearly understand zero-rated supplies and maintain proper documentation. Many exporters lose Input Tax Credit (ITC) or face refund delays due to small compliance mistakes.

This guide explains GST for exporters, zero-rated supplies, refund options, and important documentation tips in simple language.

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What Are Zero-Rated Supplies Under GST?

Under Section 16 of the IGST Act, the following are treated as zero-rated supplies:

1. Export of goods or services

2. Supply of goods or services to SEZ units or SEZ developers

👉 Zero-rated does NOT mean exempt.
GST applies, but the tax burden is neutralised through refunds or non-payment options.

also read: https://gstandtax.com/how-to-check-income-tax-refund-status-online/

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Benefits of Zero-Rated Supplies for GST for Exporters

✔ No GST burden on exports
✔ Refund of Input Tax Credit (ITC)
✔ Improved cash flow
✔ Competitive pricing in international markets

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Two Ways to Export Under GST

Exporters can choose any one of the following options:

1️⃣ Export Under LUT/Bond (Without Payment of IGST)

• No IGST paid on export invoice

• ITC on inputs can be claimed as refund

• Most preferred option by exporters

LUT (Letter of Undertaking) is filed online on the GST portal.

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2️⃣ Export With Payment of IGST

• IGST charged on export invoice

• Refund of IGST claimed after export

• Generally used when LUT is not available

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GST Refund Options for Exporters

Refunds are filed using Form GST RFD-01.

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Mandatory Documents for GST Export Refund

Incorrect or missing documents are the main reason for refund rejection.
Ensure these are ready:

For Export of Goods

• Export invoice

• Shipping bill

• Bill of lading / airway bill

• LUT copy

• Bank realisation certificate (BRC/FIRC)

• GSTR-1 & GSTR-3B filed

For Export of Services

• Export invoice

• LUT

• FIRC / BRC

• Contract / agreement with foreign client

• Proof of foreign currency receipt

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Documentation Tips to Avoid Refund Delays

✅ Mention “Supply meant for export under LUT without payment of IGST” on invoice
✅ Ensure invoice details match shipping bill
✅ File GSTR-1 & GSTR-3B on time
✅ Reconcile ITC with GSTR-2B
✅ Validate bank account on GST portal
✅ Avoid mismatch in invoice values & tax amounts

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Common GST Mistakes Exporters Should Avoid

❌ Not filing LUT on time
❌ Wrong invoice format
❌ Delay in return filing
❌ Claiming ITC on blocked credits
❌ Mismatch between GST & customs data

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GST on SEZ Supplies – Important Points

• Supplies to SEZ are zero-rated

• Endorsement from SEZ officer is mandatory

• Refund allowed only after authorised operations approval