Claiming IGST Refunds on Exports: The Complete Guide

Published on: June 2, 2025 By: GST Expert

The Integrated Goods and Services Tax (IGST) refund mechanism ensures tax neutrality for exports. This guide explains the two distinct processes for claiming refunds - for exports with IGST payment and those made under LUT/Bond, with verified flowcharts and official references.

Legal Basis for IGST Refunds

Under Section 16 of the IGST Act read with Rule 96 of the CGST Rules, exports are zero-rated supplies. Refunds are processed differently based on whether:

  1. IGST was paid on exports (automatic refund)
  2. Exports were made under LUT/Bond without tax payment (requires refund application)

IGST Paid Exports: Automatic Refund Process

Export Goods with IGST Payment
File GSTR-1 with export details
Pay IGST via GSTR-3B
Customs transmits shipping bill to GSTN
Data matches in GST system?
Yes
90% refund credited within 7 days
Balance 10% + interest within 60 days
No
Deficiency memo issued
Note: No RFD-01 filing required for IGST-paid exports (Rule 96)

Exports Under LUT/Bond: Refund Process

For exports without IGST payment, follow this process to claim refund of unutilized ITC:

  • Execute LUT/Bond before exporting
  • File GSTR-1 and GSTR-3B with export details
  • Submit refund application in RFD-01 on GST portal
  • Upload shipping bill/FIRC documents
  • Officer processes within 60 days (6% interest if delayed)

LUT/Bond Exports Refund Flowchart

Execute LUT/Bond
Export goods without IGST payment
File GSTR-1 & GSTR-3B
Submit RFD-01 with documents
Application complete?
Yes
Refund processed within 60 days
No
Deficiency memo issued

Critical Documents for Both Processes

IGST Paid Exports LUT/Bond Exports
  • Shipping bill with ICEGATE reference
  • Export invoice with GST details
  • GSTR-1 and GSTR-3B filings
  • All above documents plus:
  • Copy of executed LUT/Bond
  • Bank realization certificate (BRC)
  • RFD-01 application

Refund Tracking Process

Check refund status
IGST-paid export?
Yes
Track via ICEGATE shipping bill
Check GST portal for credit
No
Track ARN status on GST portal
Contact helpdesk if delayed beyond timelines

Key Points to Remember

  • IGST-paid exports: Fully automated, no RFD-01 needed
  • LUT exports: Must file RFD-01 for ITC refund
  • Ensure shipping bill, invoice, and GST return details match perfectly
  • Validate bank account details in GST registration
  • Time limit: 2 years from export date to claim refund

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