Zero-Rated GST Refund

Under the Goods and Services Tax (GST) law, a zero-rated supply (primarily exports of goods or services) allows suppliers to claim a refund of the GST paid on inputs and input services used in making the supply. This ensures that exports remain effectively tax-free, maintaining the competitiveness of Indian goods and services in global markets. Key points: Refund can be claimed without payment of IGST by furnishing a Letter of Undertaking (LUT), or after paying IGST and then filing for a refund. The refund is limited to the GST paid on inputs, not on exempted or non-taxable supplies. The process involves filing the refund application through the GST portal with supporting invoices and documentation. Accurate GST Return Filing helps businesses maintain proper compliance, ensure correct reporting of transactions, and support smooth processing of GST refund claims.

Example: A company exports software worth ₹10 lakh. During production, it paid ₹50,000 GST on inputs. The company can claim a refund of ₹50,000 GST from the government under the zero-rated supply provisions