GST REFUND SERVICES

GST Refund In case of Export of goods: 

There are 3 ways to export goods in GST. 1) Export without payment of GST Tax (Without payment of IGST) -LUT Model 2) Export with payment of  GST Tax (Without payment of IGST) - Pay full GST get Refund of Full GST model - Payment model   3) 0.1% SCHEME FOR MERCHANT EXPORTER SCHEME All exports will be deemed as inter-State supplies. Exports of goods and services will be treated as zero rated supplies. The exporter has the option either to export under bond/Letter of Undertaking without payment of tax and claim refund of ITC or pay IGST by utilizing ITC or in cash at the time of export and claim refund of IGST paid. 1. EXPORT WITHOUT PAYMENT OF TAX (LUT)   Under this model you don't pay any GST on export of goods because export is Zero Rated Supply. This means that government will not charge an GST on export of goods or services. And if any GST have already been charged in earlier stages of purchase chain then it will refunded to the person who ultimately export the goods or services. This means that at the time of export sale of goods in international market, you don't have to pay any GST on export sales transaction and hencewhatever GST you have paid when you purchased the goods from domestic market remains unutilised or unsed. This unused GST paid at the time of purcahse is called Unutilized ITC of GST  and you will get refund of such untilized GST. It was unutilized because government has not charged any GST on export sales transaction and on domestic purchase transaction you must have paid GST to your supplier at the time of buying the goods.  You get the credit in of this GST paid at the time of purchase of goods if your supplier (person from whom you purchase the goods) has paid this amount to government honestly. This credit is called input tax credit.or ITC. This ITC remains unutilized because you don't have to pay GST at the time of export sales. In case of refund of IGST, the shipping bill filed with the Customs is treated as an application for refund if the exporter has filed a valid return in Form GSTR-3/3B and the person in-charge of the conveyance carrying the goods to be exported has furnished an export manifest/report. Upon receipt of information regarding furnishing of a valid return in FORM GSTR-3 or FORM GSTR-3B by the exporter from the Common Portal, the Customs authorities at the port of export shall process the claim for refund and an amount equal to the integrated tax paid in respect of each shipping bill shall be electronically credited to the bank account of the exporter.   Now you can get the refund of this unutilized ( unused ) ITC by applying online on GST portal in form RFD 01 online.   For refund of tax in case of export without payment of tax, LUT model, we charge seperate professional fees.   Seperate procedure including statements, refund calculations, annexures and undertakings need to be prepared for which seperate fees is charged based on volume of transactions       2. Export of Goods under LUT but purchase of Goods at 0.1%   Here, At the time of purchase of goods, instead of paying full GST, we GST pay 0.1%  only. The supplier will not charge the GST at full Rate (5%, 12 %, 18%, 28%), but he will charge nominal GST 0.1%. Merchant exporter is under obligation to export this goods within 90 days. Merchant exporter should mention the GST number and Tax invoice number of the supplier from whom he had purchased the said Goods. And eventually, he will also provide the shipping bill and EGM numner under which the said goods have been exported. But obviously, he can hide the buyer details in the shipping bill by scratching it out or hiding by whitener or just simply tear that part.  Simple.       3. . . EXPORT WITH PAYMENT OF TAX (IGST) As shipping bill itself is the application for Refund of tax paid, we just need to verify that all mandatory details of shipping bill are precisely entered in return (GSTR 1 and GSTR 3b),  satisfying requirement of GST p