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Export of Goods and Services under GST

Export of goods means taking goods out of India to a place outside of India. Export of Services means when the supplier of service is located in India and the place of supply of service is outside India. Read on to know more

Export of Goods and Services

  • Export of goods means taking goods out of India to a place outside India.
  • Export of Services means when the supplier of service is located in India and the place of supply of service is outside India.

Treatment of Exports under GST

  1. Export of goods or services are treated as Zero rated supply i.e., the goods or services exported shall be relieved upon them either at the input stage or at the final product stage.
  2. Export of goods or services are treated as inter state supply in course of business.

Features of Export under GST scheme

  1. The goods and services can be exported either on payment of IGST which can be claimed as refund after the goods have been exported or under Letter of Undertaking (LUT) without payment of IGST.
  2. In case of goods and services exported under LUT, the exporter can claim refund of accumulated ITC on account of export
  3. The shipping bill filed with the customs is treated as an application for refund of IGST and shall be deemed to have been filed after submission of export general manifest and furnishing of a valid return in Form GSTR-3 by the applicant.

Place of Supply in case of Export of Goods

The Place of supply in case of export of goods is the place where the goods have been exported to. i.e., destination outside India

The Place of supply of Services in case of either location of supplier or receiver is outside India is governed by Section 13.

Deemed Exports

Deemed Exports refers to those transactions in which goods supplied do not leave the country and the payment for such supplies is received whether in Indian Currency or in Free foreign exchange.

Filing of Refund Application

Any person claiming refund on export of goods or services may make an application of refund before the expiry of 2 months from the relevant date

Exports Under GST FAQs

1.What are the conditions to be satisfied for a service to be classified as Export of Service?

A) The following conditions need to be satisfied as per the definition of export of services provided u/s 2(6) of the IGST Act

  • Supplier of Service should be located in India and place of supply of service is outside India
  • Recipient of service is located outside India
  • Payment for such service should be received in convertible foreign Exchange
  • Supplier of Service and receiver are not merely establishments of a distinct person
2.Can the duty credit scrips under Export incentive schemes can be utilized for payment of IGST?

No, the scrips cannot be utilized for payment of IGST and compensation cess. Similarly, scrips cannot be used for payment of CGST, SGST/UTGST or IGST for domestic procurements

3.What is the time limit for application of refund in case of refund of unutilized ITC in case of Zero-rated supplies?

The refund application should be filed within 2 years from the end of the financial year in which such claim for refund arises.

4.What is the time limit for application of refund in case of deemed exports where a refund of tax paid is available in respect of goods?

The refund application should be filed within 2 years from the date on which return relating to such deemed exports is furnished.

5.What is the time limit for application of refund in case of services exported where a refund of tax paid is available in respect of services themselves?

The refund application should be filed as follows

  • The refund application should be filed within 2 years from date of receipt of payment in convertible foreign exchange if Supply of Services has completed prior to receipt of such payment.
  • The refund application should be filed within 2 years from date of issue of invoice if payment for such service has been received prior to issue of invoice.

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