GST for Exporters and Importers – Complete Overview of Exports, Imports & GST Compliance
Your one‑stop resource for everything about GST on exports and imports – zero rated supplies, LUT, refunds, RCM, customs duty, Amazon Global Selling, and more.
Exports & Imports GST
Learn zero rating, LUT, IGST refunds, RCM, and customs compliance – all in one place.
Quick Summary – GST for Exporters and Importers
- Exports: Zero‑rated supplies – no GST charged. Claim ITC refund or IGST refund.
- LUT: File annually to export without paying IGST. Essential for cash flow.
- Imports: IGST + Customs Duty payable. IGST is creditable as ITC.
- RCM on Services: Indian recipient pays GST on imported services and can claim ITC.
- Registration: Mandatory for all exporters and importers regardless of turnover.
- Returns: Report exports in GSTR‑1 Table 6A; imports via GSTR‑2A and GSTR‑3B.
GST for Exporters and Importers: Complete Overview
International trade under GST involves a unique set of rules that differ significantly from domestic transactions. Exports are treated as zero‑rated supplies under Section 16 of the IGST Act, meaning no GST is charged to foreign buyers, and exporters can claim a refund of input tax credit. Imports, on the other hand, attract IGST in addition to customs duties, but the IGST paid is available as input tax credit to registered importers. Understanding these principles is essential for anyone involved in cross‑border trade.
DisyTax has assisted over 5,000 exporters and importers across India with GST registration, LUT filing, refund claims, RCM compliance, and return filing. Whether you are a small Amazon Global seller or a large manufacturing exporter, our resources and expert team are here to help. Start with our GST basic terms to build a strong foundation. Below you will find detailed guides on every aspect of GST for international trade.
GST on Export of Goods
Export of goods means taking goods out of India to a place outside India. It is a zero‑rated supply. Exporters can choose to export under LUT without paying IGST, or pay IGST and claim a refund. The shipping bill is the key customs document that must match the export invoice and GSTR‑1 data.
GST on Export of Services
Export of services is also zero‑rated. Freelancers, IT companies, consultants, and digital agencies exporting services to foreign clients must comply with GST procedures including LUT, export invoicing, and return filing.
Zero Rated Supplies Under GST
Zero rated supplies are supplies where the GST rate is 0%, but input tax credit is still available. This category includes exports of goods/services and supplies to SEZ units. Understanding the difference between zero rated, exempt, and nil rated is critical.
LUT for Export Business
A Letter of Undertaking (LUT) is the document that allows exporters to export without paying IGST. It must be filed annually on the GST portal. This is a must‑read for every exporter.
How to File LUT Under GST
Filing LUT is a simple online process. This guide walks you through each step with screenshots and tips to ensure your LUT is accepted without issues.
GST Refund for Exporters
Exporters can claim refund of accumulated ITC (under LUT) or refund of IGST paid on exports. This guide covers the entire refund process, documents required, time limits, and common mistakes.
GST on Import of Services
When you purchase services from a foreign provider (consulting, SaaS, cloud, advertising), GST is payable under Reverse Charge Mechanism (RCM) by the Indian recipient. This guide explains all the rules and compliance.
RCM on Import of Services
Reverse Charge Mechanism shifts the GST liability from the foreign supplier to the Indian recipient. This deep‑dive guide covers legal provisions, rates, payment, and accounting entries.
GST on Import of Goods
Importing goods into India attracts IGST in addition to Basic Customs Duty and Social Welfare Surcharge. The IGST paid can be claimed as input tax credit. Learn valuation, calculation, and compliance.
GST for Amazon Global Selling
Indian sellers on Amazon Global (exporting to Amazon.com, Amazon.co.uk, etc.) must comply with export GST rules. This guide covers LUT, shipping bill, Amazon fee ITC, and refund claims specifically for Amazon exporters.
Frequently Asked Questions (FAQs)
Is GST registration mandatory for exporters and importers?
Yes, GST registration is mandatory for all exporters and importers, irrespective of turnover. Exporters need GSTIN to file LUT and claim refunds. Importers need GSTIN to pay IGST on imports and claim input tax credit.
What is LUT and do all exporters need it?
LUT (Letter of Undertaking) allows exporters to export without paying IGST upfront. It is highly recommended for all exporters to preserve cash flow. Without LUT, you must pay IGST and claim a refund.
Are exports zero rated under GST?
Yes, exports of goods and services are zero rated supplies under Section 16 of the IGST Act. No GST is charged on export invoices, and exporters can claim refund of input tax credit.
How is GST paid on imported goods?
IGST is levied on imported goods in addition to customs duties (BCD and SWS). The IGST is calculated on the assessable value plus customs duties. The importer can claim this IGST as input tax credit.
What is the difference between zero rated and exempt supply?
In zero rated supply, ITC can be claimed and refunded. In exempt supply, ITC is not available and becomes a cost. Exports are zero rated; certain healthcare and education services are exempt.
How to claim GST refund on exports?
Under LUT, file Form GST RFD‑01 for accumulated ITC refund. If IGST paid, refund is automatic based on shipping bill and GSTR‑1 match for goods.
Is RCM applicable on import of services?
Yes, all import of services is subject to RCM. The Indian recipient must self‑invoice, pay GST in cash, and can claim ITC.
Do I need IEC for exporting goods?
Yes, Import Export Code (IEC) is mandatory for all exports of goods. It must be linked with your GSTIN.
What documents are required for export under GST?
Export invoice, shipping bill (for goods), LUT, proof of forex receipt (FIRC/BRC), and GST registration certificate.
Can I claim ITC on import of services?
Yes, GST paid under RCM on import of services can be claimed as ITC in the same month, provided the service is used for business.