Refund of GST on Export of Services: A Complete Guide [2025]

Exporters in India play a crucial role in the Indian economy. To support exporters in India, the Indian government helps them to claim GST refunds on exports of services. This mechanism ensures that businesses are not burdened by taxation. However, for this refund to be claimed, you need to understand the process behind how to claim the refund of GST on export of services.

If you export services, understanding how to file for a refund of GST on export of services is essential. This blog by the top chartered accountant firms in Gurgaon explains the importance of claiming a GST refund on export of services, different types of GST refunds, and the step-by-step process to claim the refund online. 

Understanding Export of Services Under GST

As per the IGST Act Section 2(6), the export of services refers to a supply of services where:

• The supplier is located in India.
• The recipient is located outside India.
• The place of supply is outside India.
• The payment is received in convertible foreign exchange or Indian Rupees.
• The supplier and recipient are not from establishments of a different person.

Such exports during cross border transactions are considered as zero-rated supplies under the GST (Goods and Services Tax) regime, meaning that the services are not taxable and are eligible for a refund of GST on export.

Recommended: Understanding Place of Supply Rules Under GST for Goods & Service

Eligibility Criteria for GST Refund on Export of Services

To claim the refund, the exporter must:

• Have a valid GST registration with an active GSTIN (Identification Number).
• File GSTR-1 and GSTR-3B to claim a refund during the relevant tax period.
• To claim the refund, the taxpayer needs to make a payment for the taxes at the time of exporting services.

Different Types of GST Refund Claims on Export of Services

The following are different types of GST refund claims on export of services that you can apply for using form RFD-01:

• Extra balance in the cash ledger – You can apply for a refund if there was an excess payment in taxes or if you have excess cash from the electronic cash ledger.
• IGST paid on export of services (with tax payment) – You can claim a refund of IGST paid on export of services.
• Accumulated ITC from exports (without tax payment) – You can claim a refund for unutilized Input Tax Credit (ITC) from the export of goods or services.
• ITC from supplies to SEZ (without tax payment) – You can claim a refund of the accumulated ITC for supplies made to SEZ units or developers.
• ITC from inverted tax structure – If the tax on your inputs is higher than the tax on your outputs, you can claim a refund for the accumulated ITC.
• Deemed exports – If you're the recipient of deemed exports, you can claim a refund.
• Tax paid on supplies to SEZ (with tax payments) – You can claim a refund on the tax paid on supplies to SEZ units or developers.
• Wrong classification of supply – If a supply was wrongly stated as an intrastate or interstate supply, or vice versa, you can claim a refund on it.
• Deemed export tax paid by supplier – A supplier of deemed exports can claim a refund if they paid tax but didn’t collect it from the buyer (and the buyer doesn't claim the refund).
• Refund due to assessment or court order – You can claim a refund if it arises from an assessment, appeal, or any other court order.
• Refund under ‘any other ground’ – You can use Form RFD-01 to claim a refund for any other valid reason not listed above.
• Unregistered taxpayer claiming refund – Unregistered taxpayers can claim a refund for any valid reason.

Read Also: GST on Intermediary Services: Complete Guide

Supporting Documents Required for Filing Form RFD-01

If you require professional assistance for gathering documentation to claim the refund, you can reach out to the top tax consultant in Gurgaon. You will need the following documents for the application for refund:

• Invoices: This mentions details about the service and applicable taxes on the services.
• Foreign Exchange Proof: This includes the proof of payments received in INR transactions or convertible foreign currency.
• LUT/Bond: You are required to submit this in case of tax-free exports.
• Shipping Documents (If applicable): This is to validate service delivery.
• Declaration under Section 54(3): This is to support compliance for GST refund.
• BRC/FIRC: Bank Realization Certificate or Foreign Inward Remittance Certificate that provides evidence of receipt of sales proceeds.
• Copy of GSTR-2A: This is to substantiate the Income Tax Credit (ITC) claimed during the tax period.
• Statement 2 under Rule 89(2)(c): This helps to document the details related to export transactions.
• Statement of Invoices (Annexure-B): This is to support the verification of invoices.
• Self-Certified Copies of Invoices (Annexure-A): This is to include invoices that do not appear in GSTR-2A.
• Self-Declaration for Non-Prosecution: This is required for provisional refunds under Rule 91 of the CGST Rules.

Step-by-Step Guide: GST Refund Process Online

You can file refund for export of services using the Form GST RFD-01 through the online GST portal. Here's how:

Step 1: Log in to the GST Portal online.

Step 2: Go to "Services" > "Refunds" > "Application for Refund".

Step 3: Select the correct option stating the reason for the refund, and then click on "CREATE REFUND APPLICATION".

Step 4: A dialogue box will appear for the refund. You will be required to either select "Yes" or "No".

Step 5: 

A) In case of "No", you will be redirected to the "Exports of Services with Payment of Tax" page. Click on the "Download Offline Utility" link, followed by the "Proceed" button for the next step. Fill in your invoice details, upload documents, and then submit the form. Follow the rest of the steps as stated in step 5-B.

B) In case of "Yes", you will be shown a "Declaration" checkbox. In the "Name of Authorized Signatory" drop-down list, choose the name of the Authorized Signatory. Select the "FILE WITH DSC" and "FILE WITH EVC" options to upload your Digital Signature Certificate and for OTP verification, respectively. 

After submitting the form, the system will generate an Application Reference Number (ARN) so that you can track the status of your refund. You will receive the ARN on your registered email address and mobile number as well.

Read More: What is Reverse Charge Mechanism for Import of Services in GST?

Conclusion

The GST refund on export of services helps to reduce tax liability for Indian exporters of services. Make sure to claim the refund of GST on export on time online with the Form RFD-01 on the official GST portal.