Exporters who pay IGST on goods can claim a refund of IGST to maintain liquidity and comply with GST law. The process is mostly automated but requires accurate filings and timely actions. Read through this practical guide to get a grip on the ways to refund.

What Is Required For A Refund

You must hold a valid GST registration and an Import Export Code. A shipping bill filed with customs acts as the refund application for IGST-paid exports. You also need a tax invoice for exports, proof of IGST payment, and updated bank account details on the GST portal. Filing GSTR-1 and GSTR-3B is compulsory. In some cases, additional documents such as a Bank Realization Certificate or Foreign Inward Remittance Certificate are required.

Is Filing GST Returns Mandatory

You must file GSTR-1 with details of export invoices, shipping bills, and port codes. In GSTR-3B, you must declare the IGST paid on exports. These returns form the basis of refund verification.

What Is Automated Refund Processing

The refund process runs automatically once you file both returns and customs clears the shipment. The system cross-verifies data between the GST portal and ICEGATE. Exporters do not need to file a separate refund form for IGST refunds, unlike ITC refunds or exports under Bond/LUT.
Accurate data is essential. The details in invoices, shipping bills, GSTR-1, and GSTR-3B must match. You should track refund status on the GST portal and ICEGATE. Prompt replies to any deficiency memos or notices help avoid delays. Refunds get credited directly to the bank account registered on the GST portal.

What Is The Processing Time and Interest For This

Authorities usually process IGST refunds within sixty days. If they delay, they must pay six percent interest per annum. Exporters may also receive up to ninety percent of the refund provisionally within seven days if documents are complete.

What Are The Queries and Rejections Rules

If the department finds errors, it issues a deficiency memo in Form RFD-03 or a Show Cause Notice in Form RFD-08. Exporters must submit clarifications and documents quickly to resolve the matter and continue processing.

The refund application, if required, must be filed within two years from the relevant date of export. Normal processing takes forty-five to sixty days, and delayed cases attract interest.

What Is Export Under LUT or Bond

When goods are exported under a Letter of Undertaking or Bond without IGST payment, the exporter must claim an ITC refund separately through Form RFD-01 on the GST portal with supporting documents.
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Conclusion

The refund of IGST on exports works smoothly if exporters file accurate returns, match all details, and respond to notices on time. Proper compliance ensures timely recovery of funds and supports healthy cash flow in export businesses.