The implementation of the Goods and Service Tax (GST) has been a significant act of the Government of India. Under GST, exports are treated as zero-rated supply, which gives exporters eligibility to claim a refund of the GST paid on input (goods or raw material purchased to be utilized in the manufacturing of the final product, i.e. the output)1
. All exports
are treated as inter-state supplies. The exporter can claim a refund of GST paid in two ways:
• Export under bond/Letter of Undertaking (LUT) without payment of tax and claim a refund of ITC (Input Tax Credit).
• Pay IGST by utilizing ITC at the time of export and then claim a refund of IGST paid.