Refund on Account of Export of Goods (With Payment of Tax)

Edition: September 2025
Disclaimer: This manual is for compliance facilitation. It does not substitute statutory provisions, notifications, or circulars. Taxpayers must verify with the CGST/SGST Acts, Rules, and GSTN updates.

✍️ Preface

Exporters paying IGST on goods exported out of India are eligible for a refund of the IGST and cess paid. Such refunds are processed automatically through ICEGATE based on shipping bill and GST return data. This report explains the law basis, refund process, FAQs, and a compliance checklist.

⚖️ 1. Law Basis

• Section 16(3), IGST Act, 2017 – Export of goods on payment of IGST.

• Section 54, CGST Act, 2017 – Refund of tax.

• Rule 96, CGST Rules, 2017 – Refund of IGST paid on export of goods.

🛠️ 2. Step-by-Step Process – Refund of IGST on Export of Goods

1. File GSTR-1 – Report export invoices in Table 6A/6B with correct shipping bill & port details.

2. File GSTR-3B – Report export turnover in Table 3.1(b) with IGST paid.

3. System Validation – GST portal matches GSTR-1 & 3B data; validated details transmitted to ICEGATE.

4. ICEGATE Processing – Refund application deemed filed via shipping bill. Customs matches shipping bill with Export General Manifest (EGM).

5. Refund Credit – Upon validation, IGST refund is sanctioned and credited to taxpayer’s bank account registered with ICEGATE.

6. Track Refund – On ICEGATE portal or via GST Portal → Refund Status.

📌 3. Key Features & Conditions

• No separate refund application required; shipping bill = refund application.

• Errors like wrong invoice/shipping bill details or IGST not paid in 3B may cause delays.

• Corrections possible via Table 9A of GSTR-1 or subsequent 3B adjustments.

• Refunds are only for export of goods with IGST payment (not for services).

• Bank account must be validated and linked with ICEGATE for refund credit.

❓ 4. FAQs (with Basis)

Q1. Who is eligible for this refund?
Exporters of goods who paid IGST at the time of export.

Q2. Do I need to file a separate refund application?
No, shipping bill itself is treated as refund application once returns are filed.

Q3. How do I correct errors in export invoices?
Through GSTR-1 amendments in Table 9A.

Q4. How is refund amount credited?
Directly to the ICEGATE-registered bank account.

Q5. Can exporters under LUT claim this refund?
No, LUT/Bond exporters must apply for refund separately under Rule 89.

✅ 5. Compliance Checklist