GST for Exporters India — Complete 2026 Guide

Exports from India are treated as zero-rated supplies under GST. That does not mean exempt — it means you can export without paying tax on the outward supply while still claiming back the input tax you paid on your raw materials. Getting the mechanics right is what separates exporters with healthy cash flow from those with lakhs stuck in refunds. Two routes for zero-rated exports Route 1 — Export under LUT (Letter of Undertaking), without payment of IGST. You file a LUT on the GST portal (Form GST RFD-11) at the start of each financial year. You then export without charging IGST and claim a refund of accumulated input tax credit. This is the preferred route for most exporters because it does not block working capital. Route 2 — Export with payment of IGST. You pay IGST on the export invoice and claim it back as a refund. The refund is largely automated: once your GSTR-1 and GSTR-3B are filed and the shipping bill data matches, ICEGATE processes the refund to your registered bank account. It is simpler administratively but ties up cash for weeks. Filing the LUT Log in to the GST portal, go to Services > User Services > Furnish LUT, select the financial year, upload the previous year''s LUT if applicable, and provide two witnesses. It is valid for one financial year and must be refiled every April. Exporting without a valid LUT and without paying IGST is a compliance breach that will hold up your refunds. Export invoice requirements The invoice must carry: the words "SUPPLY MEANT FOR EXPORT UNDER LUT WITHOUT PAYMENT OF INTEGRATED TAX" (or "...ON PAYMENT OF INTEGRATED TAX" for route 2), your GSTIN, the buyer''s name and address, the country of destination, the invoice number and date, the HSN code, quantity, value, and the applicable currency and conversion rate. The invoice number must be consecutive and must match exactly what appears on the shipping bill — mismatches are the most common cause of stuck refunds. Refund of accumulated ITC File Form GST RFD-01 with a statement of export invoices, shipping bills and BRC/FIRC evidence of foreign exchange realisation. Refunds are generally sanctioned within 60 days; provisional refund of 90% may be granted earlier. Keep your GSTR-1, GSTR-3B and shipping bill data aligned — the automated matching between GSTN and ICEGATE is unforgiving of small errors in invoice number or value. Other points that matter Deemed exports (supplies to EOUs and against advance authorisation) follow separate rules and are not automatically zero-rated. Services exported must satisfy the place-of-supply test and be paid in convertible foreign exchange to qualify. E-invoicing applies to businesses above the prescribed turnover threshold and applies to export invoices too. Foreign exchange must generally be realised within nine months, evidenced by an FIRC or e-BRC. This is a general guide, not tax advice. Confirm current thresholds and timelines with a chartered accountant before filing.