What are the two routes for GST export refund?

Route 1: Export with payment of IGST. The IGST paid is auto-refunded after customs processes the shipping bill and matches with GSTR-1 data. No separate refund application needed. Route 2: Export under LUT without paying IGST. Then file RFD-01 to claim refund of accumulated ITC on inputs used for the export. Route 2 is preferred for businesses with significant input tax credit.

What is a Letter of Undertaking (LUT) for exports?

An LUT (Letter of Undertaking) allows registered exporters to export goods and services without paying IGST. It is filed annually in Form RFD-11 on the GST portal before the first export of the financial year. The LUT is valid for the entire financial year. Without an LUT, exports must be made with payment of IGST (and then claim refund).

What is the time limit for claiming GST export refund?

Refund applications must be filed within 2 years from the relevant date. For export of goods, the relevant date is the date of loading on the vessel (Let Export Order date). For export of services, it is the date of receipt of payment in convertible foreign exchange.

GST Export Refund Guide

Claim your IGST refund on exports or ITC refund under LUT — complete process guide with RFD-01, timelines, common errors, and a refund estimator.

Two Routes to GST Export Refund

Route 1 — IGST Paid on Export

Export goods/services with payment of IGST. Customs processes the shipping bill and transmits data to GSTN. Refund is auto-credited to your bank — no separate RFD-01 filing needed.

Best for: Businesses with low input credit accumulation
Refund of: Full IGST paid on the export supply
Timeline: 7–14 working days after GSTR-1 filing
LUT required: No (IGST is paid)
Risk: Mismatch between shipping bill and GSTR-1 blocks auto-processing

✓ Route 2 — Export Under LUT (Preferred)

Export without paying IGST under a Letter of Undertaking (LUT). Claim refund of accumulated ITC on inputs by filing RFD-01 on the GST portal.

Best for: Businesses with significant input credits
Refund of: Accumulated ITC on inputs/input services
Timeline: 30–60 days from RFD-01 filing
LUT required: Yes — file RFD-11 before first export
Refund formula: (Export turnover ÷ Total turnover) × Net ITC

ITC Refund Estimator (Route 2 — LUT)

Total ITC accumulated (₹)

Export turnover in the period (₹)

Total turnover in the period (₹)

Adjusted Total ITC (input services, excl. capital goods)

Estimated Refund (Rule 89(4))

Export Turnover Ratio—

Net ITC—

Maximum Refund—

Formula: Refund = (Export Turnover ÷ Adjusted Total Turnover) × Net ITC
⚠ This is an estimate. Actual refund subject to officer verification and ITC eligibility.

RFD-01 Filing Process (Route 2)

1
File LUT (RFD-11) before exporting
Login → Services → User Services → Furnish Letter of Undertaking. File for the current FY before your first export. Approval is instant for most taxpayers.
2
File GSTR-1 with export details
Report all export invoices in GSTR-1 Table 6A (without payment of IGST). Include shipping bill number, port code, and foreign currency details.
3
File GSTR-3B claiming ITC
Claim ITC on all eligible inputs in Table 4A. Do not reverse ITC for export supplies — zero-rated supplies are entitled to full ITC.
4
File RFD-01 for ITC refund
Services → Refunds → Application for Refund → Select "Refund of ITC on account of zero-rated supply made without payment of tax." Upload Statement 3 (export details) and attach supporting documents.
5
Respond to RFD-03 or RFD-08 if issued
RFD-03 (deficiency memo) — correct and resubmit within 15 days. RFD-08 (show cause notice) — file reply within 15 days. Approved refunds are sanctioned via RFD-06.

Refund Form Timeline

RFD-11

LUT Filing

Before first export of FY

RFD-01

Refund Application

Within 2 years of relevant date

RFD-02

Acknowledgement

Issued by officer within 15 days

RFD-03

Deficiency Memo

If application incomplete — respond in 15 days

RFD-08

Show Cause Notice

If refund seems wrong — respond in 15 days

RFD-06

Sanction Order

Issued within 60 days of RFD-01

RFD-05

Payment Advice

Triggers bank credit — usually 3-5 working days

Frequently Asked Questions

Refund = (Export Turnover in State/UT ÷ Adjusted Total Turnover in State/UT) × Net ITC. Export Turnover = turnover of zero-rated supply of goods and services (excluding exempt supplies). Net ITC = ITC availed during the period excluding the amount of ITC availed for which refund is claimed under Rule 89(4A) or (4B). The refund is limited to the maximum refundable amount computed by this formula.

Yes. Export of services is zero-rated under Section 16 of IGST Act. Service exporters can either pay IGST on export invoices and claim refund, or export under LUT (without IGST) and claim ITC refund via RFD-01. The condition for export of services: the recipient must be outside India, payment received in convertible foreign exchange, and the supplier and recipient are not merely establishments of the same entity.

For goods exports: shipping bills, export invoices, GSTR-1 Table 6A printout, bank realization certificates (for services). For services: FIRC/BRC (Foreign Inward Remittance Certificate), export invoices, agreement/contract with foreign client, GSTR-1 Table 6B/6C printout, GSTR-2B showing ITC. Statement 3A (for inputs/input services) and Statement 5A (for capital goods) must be filed along with RFD-01.

IGST refund auto-processing can fail due to: mismatch between shipping bill and GSTR-1 values, invoice number mismatch, GSTIN mismatch, or the shipping bill not transmitted by ICEGATE. Check status on the ICEGATE portal (icegate.gov.in) and the GST portal's refund section. For stuck refunds, file a grievance on the GST portal or contact the jurisdictional CGST office.