Exports under GST are Zero rated supplies. Zero rated supplies means goods and services sold by the companies are free from Goods and Service Tax.
There are two options available with a dealer to claim refunds:
Refund procedures in case of Option 1
Refund application has to filed claiming the ITC paid on procurement of goods.
Refund procedures in case of Option 2
There is no need to file refund application (GST RFD-01) separately. The shipping bill filed by the exporter is sufficient to claim refund. The law specifies that shipping bill is to be considered as a refund claim on satisfying following two conditions:
- A person carrying the export goods should file an export manifest; and
- Applicant should have filed the returns GSTR-3 or GSTR-3B appropriately.
Once the above two documents are filed appropriately, the refund is processed by the department.