GST Refunds For Exporters In India

Refunds of Goods and Services Tax (GST) for exporters in India form a very critical link in supporting market competitiveness and optimising working capital for businesses. Therefore, it is important that the exporters understand in clear definable terms the law and the ways through which GST refunds can be claimed without any inefficiencies.

The GST law allows exporters who sell goods and services to overseas customers to claim refund of the Input GST paid on their purchases. Such purchases must be closely linked to the goods and services being exported. As per statutory provisions, refund claims can be filed right after the completion of the filing of GST returns for those months in which the exports have been made. In such cases, the maximum time limit to effect the refunds is two years from the month when the export was effected. Sometimes it is tortuous and laborious to effect the refund and, on occasions, it can be very slow.