Article is about when to apply GST Refund when goods or services are exported out of India. Legal provisions for process of GST refund scheme. GST is a destination based consumption tax where in the levy of tax moves along with goods and /or services.where a goods exporter is not in position to utilize the GST paid in inputs such as raw material , inputs etc. which are used for export of goods shall apply for refund of GST paid by goods exporter. By taking GST Refund Exporter of Goods can increase its business working capital.

1. GST Refund for Export of
Goods and Services
A N Bhutada & CO.
Chartered Accountant
Office No 145, Ashoka Mall, Bund Garden Road Pune -411001
www.anbca.com Contact No. 02030136297

2. Situations Where Refund Arises
GST Refund
Unutilized ITC due to
export of Goods
Unutilized ITC due to
export of Services
Unutilized ITC due to
deemed export of
goods & Services
Apply for Refund
in GST RFD 01

3. GST is a destination based consumption tax where in the levy of tax moves along with goods and
/or services. GST Refund” is defined under Model GST Law as refund of tax on goods / services
exported out of India or on inputs or input services used in the goods / or services which are
exported out of India, or refund of tax on supply of goods regarded as “deemed Exports’ or refund
of unutilized input tax credit. In simple terms where a goods exporter is not in position to utilize the
GST paid in inputs such as raw material , inputs etc. which are used for export of goods then he is
eligible to take refund of GST.
TYPES OF EXPORT
1. DIRECT EXPORT :- Direct Export Is Exports Where The Goods Supplied Are Exported
To Any Country Outside India And The Payment Is Received Either In Free Foreign
Exchange
2. DEEMED EXPORT : - Those Transactions In Which Goods Supplied Do Not Leave
Country, And Payment For Such Supplies Is Received Either In Indian Rupees Or In Free
Foreign Exchange.
3. THIRD PARTY EXPORT : - Third Party Exports Are Exports Made By Exporter On Behalf
Of Another Exporter Or Manufacturer.
GST Refund for Exporters

4.  In case of exports of goods and duty is not payable then tax paid on
inputs and claiming refund of the paid taxes at the time of export.
services out of India on which export.
REFUND MECHANISM TWO OPTIONS
A. A Registered Taxable Person May Export Goods Or Services Under Bond
Without Payment Of IGST And Claim Refund Of Unutilized Input Tax Credit In
Accordance With Provisions Of Section 48 Of The CGST Act, 2016 (Provisions
On Refund).
B. A Registered Taxable Person May Export Goods Or Services, On Payment Of
IGST And Claim Refund Of IGST Paid On Goods And Services Exported In
Accordance With Provisions Of Section 48 Of The CGST Act, 2016
Export of Goods or Services (Including Deemed Export)

5. Step 1 MAKE APPLICATION IN GST RFD 01 TO PROPER
OFFICER
TAKE ACKNOWLEDGEMENT IN FORM GST RFD-02
IF ANY DEFICIENCIES IN REFUND CLAIM THEN OFFICER
COMMUNICATE SAME IN FORM GST RFD-03
AFTER SCRUTINY OF THE CLAIM AND SATISFACTION
OFFICES SANCTION CLAIM IN FORM GST RFD – 04
REFUND SANCTION/REJECTION ORDER GST RFD 05
ORDER FOR COMPLETE ADJUSTMENT OF CLAIMED
REFUND GST RFD 06
Step 2
Step 3
Step 4
Step 05
Step 06
Flow Chart of Refund Claim under GST With Forms

6. Step 7 SHOW CAUSE NOTICE FOR REJECT OF REFUND APPLICATION GST RFD
PAYMENT ADVICE GST RFD 08
ORDER FOR INTEREST ON DELAYED REFUNDS GST RFD 09
REFUND APPLICATION FORM FOR EMBASSY/INTERNATIONAL
ORGANIZATIONS
Step 8
Step 9
Step 10
Flow Chart of Refund Claim under GST With Forms

7. Under the provisions of GST
refund need to be make to
proper officer with the relevant
date as specified. Beyond relevant
period GST refund applicable
become time bard.
REFUND OF GST:
When Goods exporter is not in a
positions to utilize the input GST
credit due to export of gods in
that case person can apply for
refund of GST to government
department
Net Input Tax Credit" means
input tax credit availed on
inputs and input services during
the relevant period like in that
quarter.
Eligible Person shall apply for refund
in Form GST RFD 10 on quarterly
basis by using GST electronica mode
as available on common portal.
For making GST refund claim
application various documents
required such as electronic credit
register, export invoices, Shipping
Bill, Annexure 2 certified by CA ,
other supporting
The proper officer after scrutiny of
the claim and evidences submitted
in supporting to claim application
shall make refund order in Form GST
RFD-04 provisional
Net ITC :
Documents Required:Application Period :
Period of Application :
Grant of GST Refund :
Highlights Of GST Refund For Export Of Goods And Services

8.  The Refund Claimed In Part B Of GSTR-3 Shall Be Deemed To Be An Application Filed For Refund.
 Person Claiming Refund Has Not Been Prosecuted For Any Offence Under Gst During Any 5 Preceding
Years. If He Has Been Prosecuted Under An Earlier Law, The Amount Of Tax Evaded Should Not Exceed
Rs.2,50,000.
 GST Compliance Rating Of The Applicant Is Not Less Than 5 On A Scale Of 10.
 No Proceeding For Any Appeal, Review Or Revision Is Pending On Issues Which Form The Basis Of
The Refund Pending, The Same Has Not Been Stayed By The Appropriate Authority Or Court.
 Refund Shall Be Granted After Adjusting Any Outstanding Demand Payable By The Applicant.
 Any Amount Rejected As Refund Shall Be Re-credited To The Electronic Credit Ledger.
 Person Claiming Refund Of Tax Paid On Inward Supplies Shall Apply For Refund In Form GST RD-10
Once In Every Quarter
Key Points of GST Refund

9. A N BHUTADA & CO
CHARTERED ACCOUNTANT
: 020-30136297 / 80555 66789
: office@anbca.com
amitbhutada@outlook.com
: www.anbca.com
: Office No. 145, Ashoka Mall,
Bund Garden Road ,
Pune – 411 001 ( MH )