India's Trade Overview



Prior to the introduction of GST, exporters could claim a duty drawback for tax on inputs for exports of exempted goods. For exports under GST, the duty drawback is available only for customs duty on imported inputs or central excise on some petroleum/tobacco products utilised as inputs for captive power generation.

Exports under GST are treated by the government as zero-rated supply. This means that the exporter can claim input tax credit for the product exported and he/she does not need to pay GST on the export transaction.

An exporter of goods or services or both that are declared zero-rated under GST can claim a refund for zero-rated supplies. He/she needs to file for the refund on the common portal directly or via the facilitation centre notified by the GST Commissioner. An exporter needs to file a shipping bill, which will be considered as an application for the refund of IGST.

The supply of goods or services to the following would be treated as exports under GST

• Supply of goods by a registered person against Advance Authorisation
• Supply made to an Export oriented undertaking (EOU) or Hardware Technology Park unit, Software Technology Park unit, Biotechnology Park unit
• Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation
• Supply of gold by a bank or Public Sector Undertaking against Advance Authorisation as per Customs law

An exporter would be eligible to claim refund under the following options:

(a) He may export under bond, without payment of IGST and claim refund of unutilized input tax credit in;
(b) He may export on payment of IGST and claim refund of IGST paid on goods and services exported.
(c) The SEZ developer or SEZ unit receiving zero rated supply can claim refund of IGST paid on supply to SEZ.