GST Compliance Checklist for Exporters
A step-by-step guide to GST compliance for exporters, including documentation requirements, refund claims, and common pitfalls to avoid.
Export businesses in India enjoy several GST benefits including zero-rated supplies and input tax credit refunds. However, claiming these benefits requires meticulous compliance with GST regulations and documentation requirements.
Critical Requirement
All exporters must obtain GST registration regardless of turnover threshold. You also need an IEC (Import Export Code).
Zero-Rated Supply & LUT
Exports are classified as 'Zero-Rated Supplies', meaning the entire supply chain is tax-free. To export without paying IGST upfront, you must file a Letter of Undertaking (LUT) at the beginning of every financial year. This allows you to export goods/services without payment of tax and later claim a refund of unutilized Input Tax Credit (ITC).
Monthly Compliance Calendar
- 10th: Upload invoices on GSTR-1.
- 13th: Validate on IFF (Invoice Furnishing Facility).
- 20th: File GSTR-3B with payment.
- 30th: Reconcile shipping bills.
Claiming Refunds
Refunds can be claimed under two routes: (1) Export without payment of tax (LUT) and claim refund of accumulated ITC, or (2) Export on payment of IGST and claim refund of the tax paid. For most businesses with high input costs, the LUT route is more cash-flow friendly.
In Conclusion
GST compliance for exporters, while comprehensive, is manageable with proper systems and documentation.