Exports
How zero-rating and refunds work for exporters.
Exports are zero-rated
Under GST law, exports of goods and services are treated as zero-rated supplies — meaning no GST is charged on the export itself, but the exporter can still claim credit for taxes paid on inputs.
Two routes to choose from
You can either export under a Letter of Undertaking (LUT) without paying tax and later claim a refund of accumulated input credit, or pay IGST at the time of export and claim a refund of that tax paid.
Filing an LUT
The Letter of Undertaking is filed once per financial year on the GST portal and lets you export without upfront tax payment, which is the more common route for regular exporters.
Claiming refunds
Refund applications are filed through Form RFD-01, along with shipping bills and bank realization certificates confirming that export proceeds were received.
Common pitfalls
Refunds are frequently delayed due to mismatches between shipping bill data and GST returns, so keeping both systems reconciled is essential for a smooth refund cycle.