GST Refund | GST Refund Process for Export under LUT | GST Refund Procedure | RFD 01 Full Process

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Export under LUT :

1. EXPORT WITHOUT PAYMENT OF TAX (LUT)

Under this model you don't pay any GST on export of goods because export is Zero Rated Supply. This means that government will not charge an GST on export of goods or services. And if any GST have already been charged in earlier stages of purchase chain then it will refunded to the person who ultimately export the goods or services. This means that at the time of export sale of goods in international market, you do not have to pay any GST on export sales transaction and hence whatever GST you have paid when you purchased the goods from domestic market remains unutilised or unused. This unused GST paid at the time of purchase is called Unutilized ITC of GST and you will get refund of such unutilized GST. It was unutilized because government has not charged any GST on export sales transaction and on domestic purchase transaction you must have paid GST to your supplier at the time of buying the goods. You get the credit in of this GST paid at the time of purchase of goods if your supplier
(person from whom you purchase the goods) has paid this amount to government honestly. This credit is called input tax credit.or ITC. This ITC remains unutilized because you don't have to pay GST at the time of export sales.
Now you can get the refund of this unutilized ( unused ) ITC by applying online on GST portal in form RFD 01 online.


Under the GST Law, export of goods or services has been treated as: 'zero rated supply' i.e. the goods or services exported shall be relieved of GST levied upon them either at the input stage or at the final product stage.

Furnish LUT :
Please LUT before executing Export of Goods without payment of IGST under LUT

If goods are not exported within 90 days of issuing export invoice then you will have to pay IGST on that invoice. So don’t make export tax invoice until your order is full and final.


If payment related to export of service in foreign exchange in not realized in 1 year from the date of issue of export invoice, then also you are liable to pay GST with interest of 1 year.

Limit of filing refund : 2 years.

Section 54 (3) :A registered person may claim refund of any unutilised input tax credit at the end of any tax period:
Provided that no refund of unutilised input tax credit shall be allowed in cases other than-
(i) zero rated supplies made without payment of tax;
(ii) where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council:


Zero rated supply includes :
a. Export
b. Supply to SEZ.

On Same day, you can export with IGST and export under LUT both on same day under different shipping bill. Each shipping bill is different.

How will exports be treated under GST?
All exports will be deemed as inter-State supplies. Exports of goods and services will be treated as zero rated supplies. The exporter has the option either to export under bond/Letter of Undertaking without payment of tax and claim refund of ITC or pay IGST by utilizing ITC or in cash at the time of export and claim refund of IGST paid.


Once you apply refund your electronic credit ledger will be debited by an amount equal to refund.

Max Refund : NET ITC * TOTAL ZRS OF GOODS & SERVICES / TOTAL TO
Here, Zero rates supply means only towards LUT and not related to export with payment of IGST.

Only those purchase invoices related ITC will be eligible refund which are reflected in GSTR 2B: If no 2B then no refund.

The delay in furnishing of LUT in such cases may be condoned and the facility for export under LUT may be allowed on ex post facto basis taking into account the facts and circumstances of each case.


Refund of ITC on exempt products exports like tomato, potato, onion etc:’ Yes available and LUT no needed for export of exempt supply : you can get refund of GST paid of many services like Cha Service, Packing material used in doing export of exempt goods like vegetables etc.

File LUT on time: LUT is valid for one financial year. You cannot file LUT for past years. So Please file LUT on time. Moreover, You can file LUT for upcoming financial year.