info@globaxsolutions.com
+91-790-200-2800
GST for Export Business - Globax Solutions
Starting an export business in India brings tremendous opportunities, but to operate legally and benefit from government incentives, GST compliance is a must. Understanding the GST requirements for export business ensures smooth customs clearance, timely payments, and eligibility for refunds. Whether you’re exporting goods or services, following the right GST procedure helps you avoid legal troubles and financial losses.
At Globax Solutions, we guide exporters through every stage of GST compliance—from registration to refund claims—so they can focus on growing their global trade. In this blog, you will learn how GST impacts exports, the concept of zero-rated supply, and the essential steps exporters must follow under Indian tax laws.
Understanding GST in the Context of Exports
GST Structure for Exporters in India
Goods and Services Tax (GST) is an indirect tax system applicable across India. While domestic transactions involve payment of GST at various slabs, exports are treated differently. Under GST law, exports are considered zero-rated supplies, which means that exported goods or services attract 0% tax, but the exporter can still claim Input Tax Credit (ITC) or opt for exports without paying IGST by furnishing a Letter of Undertaking (LUT).
The GST framework for exports is designed to ensure that the country’s products remain competitive in the global market. By not imposing a tax on exports but allowing tax refunds on input purchases, the system promotes international trade.
Globax Solutions assists new and established exporters in leveraging the zero-rated supply model to ensure that taxes do not become a burden while entering foreign markets.
What Makes GST Compliance Mandatory for Exporters
Even though exports are zero-rated, GST compliance remains mandatory. Every exporter must have:
- A valid GST registration in the state where the business operates
- A registered LUT under GST to export without paying IGST
- Regular GST return filing, including export invoices
- Correct HSN/SAC codes on all taxable supplies
- Accurate e-invoicing and e-way bill generation for physical goods
Non-compliance can result in delayed refunds, rejection of shipping bills, or even blacklisting under customs monitoring systems. Globax Solutions ensures exporters meet every compliance requirement on time, so their global supply chain remains uninterrupted.
Key GST Compliance Steps for Export Businesses
Getting LUT Approval to Export Without Payment of IGST
Exporters who wish to supply goods or services without paying IGST upfront must apply for a Letter of Undertaking (LUT) through the GST portal. This is a declaration that the exporter agrees to abide by the rules of zero-rated supply and will bring foreign currency proceeds into the country within the stipulated time frame—typically within 1 year for goods and 6 months for services.
LUT filing is free and must be renewed every financial year. Once approved, it allows exporters to ship products without blocking working capital on IGST payments. Globax Solutions helps clients file LUTs correctly, avoiding any rejection from the GST department.
In case an exporter doesn’t have an LUT filed, they must pay IGST on exports and claim it back as a refund, which often delays the working capital cycle.
Filing GST Returns and Export Invoices Correctly
Every registered exporter must file monthly or quarterly GST returns (GSTR-1 and GSTR-3B), including details of their domestic and export invoices. The export invoices must contain essential information like:
- Export invoice number and date
- Shipping bill number and date
- Port of dispatch
- Currency of transaction
- Details of IGST charged (if applicable)
- HSN/SAC codes for goods or services
These invoices must match the documents filed at customs via ICEGATE. Any mismatch may lead to refund rejections or legal queries from GST or Customs departments.
Globax Solutions ensures every export transaction is reflected correctly in your GST returns, linking e-invoicing, ICEGATE, and refund portals seamlessly for your business.
GST Refund Process for Exporters
Claiming Refund of IGST Paid on Exported Goods
If an exporter has not filed an LUT and pays IGST at the time of exporting goods, they are eligible to claim that amount as a refund. This refund is automatically processed when:
- Shipping bill is filed on ICEGATE
- Export invoice is included in GSTR-1
- GSTR-3B includes the tax amount
- Payment realization is completed through banking channels
Once the system matches all these records, the IGST refund for exporters is credited to the bank account linked with the GST registration.
Globax Solutions works closely with exporters to ensure refund applications are not delayed due to missing data or technical mismatches. Our team resolves errors like mismatched invoice numbers, bank account issues, or GSTIN linking problems.
Refund of Input Tax Credit (ITC) Under LUT
Exporters who supply goods or services under LUT are eligible to claim ITC refund on the taxes paid on their inputs—raw materials, packing material, freight, services, etc.
The process includes:
- Calculating eligible ITC
- Filing RFD-01 form via GST portal
- Uploading supporting documents like purchase bills, invoices, and LUT copy
- Submitting to the jurisdictional GST officer for verification
The refund is processed within 60 days under the law. However, practical delays can occur without proper documentation and follow-up. Globax Solutions ensures exporters get their ITC refunds without unnecessary wait times by handling document preparation, submission, and follow-through.
Make GST Work for Your Export Business with Globax
Understanding the GST requirements for export business is crucial for any Indian company aiming to go global. Whether you are exporting textiles, engineering goods, software, or handicrafts, your business must be GST-compliant to avoid roadblocks during shipping, customs clearance, and foreign currency settlements.
The key components every exporter must manage under GST are:
- Proper GST registration and classification
- Timely LUT filing to avoid IGST payments
- Accurate GST return filing with export invoices
- Timely refund claims for IGST or Input Tax Credit
- Avoiding mismatches between GST portal and ICEGATE system
At Globax Solutions, we take away the stress of compliance. From initial GST registration to refund follow-ups, we offer end-to-end GST export services designed specifically for Indian exporters. Our team ensures your business is registered correctly, files returns on time, and never misses out on eligible tax refunds.
Contact us for more details of & Your registration
Our team will be happy to assist you
Mobile: +91-790-200-2800