Claim a GST Refund explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
To export without paying IGST, furnish a Letter of Undertaking in Form GST RFD-11 for the financial year, then claim the refund of accumulated unutilised ITC in Form GST RFD-01 under Rule 89. The refund equals (zero-rated turnover × Net ITC) ÷ adjusted total turnover, filed within two years of the relevant date.
Overview
Exports are zero-rated, so exporters can supply without paying tax by furnishing an LUT and later claim back the input tax credit that accumulates on their purchases. This is the "without payment of tax under LUT" route, preferred by exporters who want to avoid blocking working capital in IGST.
When It Is Required & Legal Basis
Section 16 of the IGST Act, 2017 (zero-rated supplies) with Section 54 of the CGST Act, 2017 and Rule 89 and Rule 96A of the CGST Rules, 2017 govern this route. The LUT is furnished in Form GST RFD-11 and the refund of unutilised ITC is claimed in Form GST RFD-01.
Step-by-Step Process
- Furnish the LUT. File Form GST RFD-11 for the financial year before making zero-rated supplies without payment of tax.
- Export and maintain records. Raise export invoices without IGST, mentioning "Supply meant for export under LUT without payment of IGST".
- Report in GSTR-1 and 3B. Disclose zero-rated supplies in GSTR-1 Table 6A and GSTR-3B Table 3.1(b).
- Open RFD-01. Go to Services → Refunds → Application for Refund → "Export of goods/services without payment of tax".
- Compute and upload. Enter Net ITC, turnover figures, upload statements (Statement 3/3A) and CA certificate if refund exceeds ₹2 lakh.
- Submit and track. File with DSC/EVC; an ARN is generated and the officer processes RFD-02/RFD-04/RFD-06.
Forms, Attachments & Fees
| Form | Purpose | Timeline |
|---|---|---|
| GST RFD-11 | Letter of Undertaking (LUT) | Once per financial year, upfront |
| GST RFD-01 | Refund application (unutilised ITC) | Within 2 years of relevant date |
| GST RFD-02 | Acknowledgement | Within 15 days |
| GST RFD-04 | Provisional refund (90%) | Within 7 days of acknowledgement |
| GST RFD-06 | Final sanction order | Within 60 days |
No government fee. Attach export invoices, shipping bills/FIRC, Statement 3 and a CA/CMA certificate where the claim exceeds ₹2 lakh.
Timeline & Due Dates
File the LUT before the first export of the year. File RFD-01 within two years from the relevant date. The officer acknowledges within 15 days (RFD-02), grants 90% provisional refund within 7 days for zero-rated supplies, and passes the final order within 60 days; interest at 6% applies if delayed beyond 60 days.
Penalty for Delay / Non-compliance
If export proceeds are not realised within the period allowed under FEMA (or goods not exported within three months under Rule 96A), the exporter must pay IGST with interest at 18% under Section 50. Excess refund is recoverable with interest.
Practical Tips
- File the LUT at the start of every financial year — exporting without a valid LUT forces the IGST-payment route.
- Refund is period-wise; do not club tax periods across financial years in one RFD-01.
- Reconcile Net ITC with the electronic credit ledger to avoid deficiency memos (RFD-03).
- Keep bank realisation certificates/FIRC ready for service exports.