Input Tax Credit
Exports have been the area of focus in all policy initiatives of the Government for more than 30
years. Now with the Make in India initiative, exports continue to enjoy this special treatment
because exports should not be burdened with domestic taxes. On the other hand, GST demands that
the input-output chain not be broken and exemptions have a tendency to break this chain.
Zero-rated supply is the method by which the Government has approached to address all these
important considerations.
The intention of government not to burden the export with tax could be achieved either by
allowing not to charge tax on the exports of goods/services and claim the refund of input tax
credits of taxes paid on inward supplies or by allowing the refund of tax charged on the exports
made. Both these alternatives have been enabled in this section. Zero-rated supplies may be
undertaken in either of the following ways:
Taxable person to avail input tax credit used in making outward supply of goods or service
or both and make zero-rated supply-
a) Without any payment of IGST on such outward supply by executing LUT (Letter of Undertaking) or
bond (dispensed off vide notification 37/2017-Central tax). Claim refund of input tax credit
used in the outward supply.
b) Make payment of IGST on the outward supply by debiting ‘electronic credit ledger’ but without
collecting this tax from the recipient. After completing the outward supply, claim refund of the
IGST so debited (unjust enrichment having been duly satisfied).
Documents Required for Export Refund Under GST:
Copy Of Purchase Bill
Copy Of Sale Bill/ Export Invoice.
Copy Of Packing Bill
Copy Of Shipping Bill
Copy Of Bill Of Lading /Airway
Copy Of e-BRC
Export Exemption Certificate
Bank Statement
CA Certificate.
Affidavit To The Effect That Dealer Pertains To
Ward And Has Not Claimed Refund From Central Government.
Undertaking/ Indemnity Bond To The Effect That
Dealer With Refund The Amount If Paid In Exceed.
