I heard exports are zero-rated and I can claim GST back. How does GST work for an exporter of agri produce.
3 जवाब
Exports are treated as zero-rated under GST, which means you do not charge GST to the foreign buyer, and you can recover the GST you paid on your inputs. There are two routes: export under a LUT (Letter of Undertaking) without paying IGST and then claim refund of the input tax credit, or pay IGST on the export and claim a refund of that IGST. Most exporters file a LUT (a simple online undertaking on the GST portal) to avoid blocking funds. Note many raw agricultural products are themselves exempt or nil-rated under GST, so your input credit may be limited, but you can still claim on packing, freight and other taxable inputs. There are also schemes like RoDTEP that refund certain embedded duties on exports. The rules and rates change, so consult a GST practitioner and confirm current provisions on the GST and DGFT portals.
File the LUT on the GST portal so you export without paying IGST. It saves your money getting locked up in refunds. We renew it every financial year.
Ask your accountant about RoDTEP too, it gives back some embedded duties on exports. Small but adds up over many shipments.