GST ITC Refund on Exports with Tax Payment: Points & Precautions

Here are some practical Points & Precautions for GST ITC Refund on Exports with Tax Payment

Point No. 1:
Ensure Correct Export Invoice Details

Action: When raising an export invoice, ensure it has:

Correct GSTIN (for registered buyers, if applicable).

Exact invoice number and date as per books.

IGST rate and tax amount clearly mentioned.

Accurate HSN/SAC codes as per the tax rate slab.

Precaution: Double-check that the details match those in shipping bills to avoid mismatches later.

Point No. 2:
File GSTR-1 Accurately (Exports Reporting)

Action: While filing Table 6A of GSTR-1, ensure:

IGST paid on exports is correctly entered.

Invoice details match Shipping Bill and ICEGATE portal records.

Proper selection of “With Payment of Tax” for claiming refund.

Precaution: Always cross-verify details before submission—incorrect filing can delay refunds by weeks.

Point No. 3:
File GSTR-3B & Declare IGST Payment

Action: While filing GSTR-3B, report:

Total taxable value and IGST paid on exports.

Correct adjustment of ITC claimed and utilized for tax payment.

Precaution:

Mismatch between GSTR-1 and GSTR-3B leads to refund rejection.

Always reconcile ITC ledgers before claiming.

Point No. 4:
Validate Shipping Bill Details on ICEGATE Portal

Action: Ensure:

Shipping Bill Number is entered correctly.

Export General Manifest (EGM) is filed by the shipping carrier.

Precaution: Delay in EGM filing means automatic refund rejection. Follow up with customs agents if required.

Point No. 5:
Track Refund Status Regularly

Action: Monitor refund status on:

GST Portal → Services → Refunds → Track Status.

ICEGATE portal (to check if shipping bill and IGST details match).

Precaution: If refund is not credited within 30-45 days, check for rejection reasons and respond to notices in time.

Point No. 6:
Rectify Any Errors Immediately

Action: If mistakes are found:

Use GSTR-1 amendment in the next return cycle to correct invoice details.

Adjust incorrect IGST payment in subsequent GSTR-3B returns.

File RFD-01 (manual refund application) if required.

Precaution: Delays beyond time limits (2 years) may lead to refund forfeiture.