LEGAL FRAMEWORK
The Statutory Basis
for Your Refund Claim
SECTION 16(3) — IGST ACT, 2017
"A registered person making zero rated supply shall be eligible to claim refund of unutilised input tax credit on supply of goods or services or both, without payment of integrated tax, under bond or Letter of Undertaking, in accordance with the provisions of Section 54 of the Central Goods and Services Tax Act or the rules made thereunder."
RULE 96 — CGST RULES, 2017
"The shipping bill filed by an exporter shall be deemed to be an application for refund of integrated tax paid on the goods exported out of India and such application shall be deemed to have been filed only when the Export General Manifest has been filed and the applicant has furnished a valid return in FORM GSTR-3B."
Under the IGST framework, exports of goods and services are treated as zero-rated supplies under Section 16 of the IGST Act, 2017. Exporters are entitled to claim refund of IGST paid on exports, or alternatively, claim refund of accumulated Input Tax Credit on export supplies made under LUT without payment of IGST. Vertax Partners handles both routes with equal precision.
ELIGIBILITY ASSESSMENT
Who Qualifies — and Who Does Not
Understanding eligibility before filing prevents rejection. We conduct a mandatory eligibility review on every mandate before proceeding.
Export of Goods (with IGST payment)
Where IGST has been paid on export supplies and shipping bill reflects the tax amount — refund claim under Rule 96 applies.
Export of Goods / Services under LUT
Where export is made without IGST payment under LUT, accumulated ITC refund under Section 54(3) read with Rule 89 applies.
Export of Services (FIRC / BRC available)
Zero-rated services exported to overseas recipients — FIRC and contract documents establish eligibility for IGST or ITC refund.
SEZ Supplies (Zero-Rated)
Supplies to Special Economic Zones with or without payment of IGST qualify as zero-rated under Section 16(1)(b) of the IGST Act.
Not Eligible — Deemed Exports
Deemed exports under Section 147 of CGST Act do not qualify for IGST refund under Rule 96 — separate mechanism applies.
Not Eligible — GSTR-1 / 3B Mismatch Pending
Where GSTR-1 export data does not reconcile with GSTR-3B, refund claim remains suspended until rectification is filed.
OUR PROCESS
How We Handle
Your Refund Mandate
01
Eligibility & Document Review
Statutory eligibility assessment, GSTR-1 vs GSTR-3B reconciliation, and shipping bill verification before any filing.
DAY 1–302
Refund Application Preparation
Filing of RFD-01 on GST portal with supporting documents — invoices, BRC/FIRC, shipping bills, LUT copy.
DAY 3–703
Deficiency Memo Response
If department issues RFD-03 deficiency memo, we prepare and file the response within the statutory 15-day window.
IF RAISED04
Department Follow-Up
Proactive follow-up with the refund sanctioning authority and representation at personal hearings where required.
ONGOING05
Refund Order & Disbursal
Tracking of RFD-06 sanction order and verification of credit to bank account. Post-disbursal compliance check.
DISBURSALDOCUMENTATION CHECKLIST
Documents Required
for Filing
For Export of Goods
- Shipping Bills (all export consignments for the period)
- Export invoices with HSN, IGST amount, and port details
- GSTR-1 returns for the relevant tax periods
- GSTR-3B returns for the relevant tax periods
- EGM (Export General Manifest) — port-issued
- Bank Realisation Certificate (BRC) for goods
- LUT acknowledgement (if export under LUT)
- IEC (Importer Exporter Code) copy
For Export of Services
- Export invoices issued to overseas recipient
- Foreign Inward Remittance Certificate (FIRC)
- Service export agreement / contract copy
- GSTR-1 — Table 6A (export of services entries)
- GSTR-3B returns for the relevant period
- Bank statement showing foreign currency receipt
- LUT copy (if service exported without IGST payment)
- Declaration of export in prescribed format
COMMON REJECTION GROUNDS
Why Refund Claims Are Rejected
— and How We Address Each
GSTR-1 vs GSTR-3B Mismatch
Export data reported in GSTR-1 does not match IGST paid in GSTR-3B — most common ground for suspension of refund.
Remedy: Amendment of GSTR-1 via Table 9A and reconciliation filing
Shipping Bill — GSTIN Mismatch
GSTIN on shipping bill differs from registered GSTIN or invoice GSTIN — triggers system-level rejection.
Remedy: ICEGATE amendment request with Customs authority + reconciliation
BRC / FIRC Not Available
For service exports, non-submission of FIRC or BRC leads to rejection on grounds of proof of export realisation.
Remedy: Bank-issued FIRC procurement and supplementary documentary submission
LUT Expired or Not Filed
Where exports are made without IGST payment, an expired or unfiled LUT invalidates the zero-rating claim.
Remedy: Fresh LUT filing for the relevant year + rectification of prior exports
Rule 96(10) Restriction
Where ITC was availed on imports at concessional rates, IGST refund on exports is blocked under Rule 96(10).
Remedy: Eligibility re-assessment and switch to ITC refund route if applicable
Incomplete RFD-01 Application
Missing supporting documents or incorrect period selection in the refund application triggers RFD-03 deficiency memo.
Remedy: Timely response to deficiency memo within 15-day statutory window
FREQUENTLY ASKED
Questions Exporters
Ask Before Engaging
How long does the IGST refund process typically take?
Under Rule 91 of the CGST Rules, provisional refund of 90% must be granted within 7 days of acknowledgement. Final refund order under Section 54(5) is to be issued within 60 days. In practice, with proper documentation and proactive follow-up, disbursal is achieved within 45–75 days from filing.
Can we claim refund for past periods that were not claimed earlier?
Yes. Refund claims for IGST paid on exports can be filed within 2 years from the relevant date as specified under Section 54(1) of the CGST Act. The relevant date for export of goods is the date of EGM filing. Delayed claims are permitted within this limitation period.
Our IGST refund claim was rejected — can it be appealed?
Yes. A refund rejection order passed in Form RFD-06 can be challenged by filing an appeal before the Appellate Authority (Commissioner — Appeals) under Section 107 of the CGST Act within 3 months of the rejection order. Vertax Partners handles the complete appellate process.
We are an NRI-owned entity — can you handle our refund without us visiting India?
Entirely. All consultation, document exchange, application filing, and departmental representation is conducted virtually. We have handled multiple NRI-owned entity refund mandates across IT services, consultancy, and manufacturing sectors without client physical presence.
What is your fee structure for IGST refund mandates?
Our fee for refund mandates is structured as a combination of a fixed engagement fee and a success-linked component based on the amount recovered. Exact structure is communicated after the initial free consultation and eligibility assessment. No fees are charged before engagement confirmation.